Negotiations within the OECD to tax tech giants are blocked due to opposition from several countries, including the United States, Saudi Arabia and India, French Economy Minister Bruno Le Maire lamented on Monday.
“Currently things are blocked, especially by the United States, Saudi Arabia and India. We will advocate for an unblocking” although “the chances of success are slim,” said the French minister at a press conference prior to a ministerial meeting of the G20 this week in India.
“I remember that we have always said that if the G20 and OECD countries were not able to agree on the implementation of a digital tax, we will advocate for a European implementation,” he added.
The minister recalled that France has already approved a domestic tax on large technology companies that has brought in “close to 700 million euros a year” to the French public coffers.
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The tax on technology giants is one of the two pillars of the agreement of the OECD (a club of countries, mostly rich, based in Paris) to lay the foundations of fair competition on a global scale in the field of corporate taxation.
The second pillar seeks to establish a minimum tax of 15% on the profits of these companies.
In this section, the situation “has progressed a lot” and this minimum tax could begin to be applied “in the coming months”, according to the French minister, even if the United States continues to apply its own tax system.