Biden expected to clarify US position on digital taxation within two months: France


The European Union hopes that the incoming administration of Joseph Biden will clarify the US position on digital taxation within two months of taking office, a source from the French finance ministry said on Monday.
The EU plans to move forward with a bloc-wide tax on digital services offered by companies like Google and Amazon if a global deal to rewrite the rules for cross-border taxation is not not concluded by mid-2021.

Efforts by the Organization for Economic Co-operation and Development (OECD) to update the rules for the digital age have stalled this year. Donald Trump’s administration hesitated at the prospect of signing a multilateral agreement shortly before the presidential election.

EU heads of state and government are due to look into the situation in March and decide on the way forward for the bloc, the French finance ministry source said.

“Obviously, March was not chosen by chance. March will be two months after Biden takes office… We hope to have contacts in these two months with the new American administration, ”said the source.

“Based on what the Biden administration says, the European Council – this is at the level of EU heads of state and government – will give guidance in March,” the source added.

France is pushing its European partners to prepare a European digital tax at the beginning of 2021 that could be quickly applied in the event that negotiations at the OECD fail again by the middle of the year.

Paris has its own national digital tax, but is committed to removing it as soon as there is an international agreement. He suspended the levy this year until December while negotiations at the OECD were underway.

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)

Dear reader,

Business Standard has always strived to provide up-to-date information and commentary on developments that matter to you and that have broader political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these difficult times stemming from Covid-19, we continue to remain committed to keeping you informed and up to date with credible news, authoritative opinions, and cutting-edge commentary on relevant current issues.
However, we have a demand.

As we fight the economic impact of the pandemic, we need your support even more so that we can continue to provide you with higher quality content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscribing to our online content can only help us achieve the goals of providing you with even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism we are committed to.

Support quality journalism and subscribe to Business Standard.

Digital editor


Please enter your comment!
Please enter your name here