ADVERTISEMENT

Germany urges global minimum tax for digital giants

"We need a minumum tax rate valid globally which no state can get out of (applying)," Scholz, a social democrat in conservative Chancellor Angela Merkel's coalition government, told the "Welt am Sonntag" weekly.

Europe is trying to devise a strategy to tax profits from the likes of Google, Amazon, Facebook, Apple and digital platforms such as YouTube and Airbnb which currently manage to keep fiscal exposure to a bare minimum.

Digital platforms "aggravate a problem which we know well from globalisation and which we are trying to counter -- the shifting of profits to fiscally beneficial regions," said Scholz.

Scholz was last week nonetheless reported not to be convinced by a controversial EU proposal to slap a European tax on US tech giants amid worries it may turn out to be both ineffective and protectionist.

ADVERTISEMENT

France for a year has rallied EU partners to draw up the tax which Paris says is necessary to ensure tech giants pay their way.

Scholz explained he had launched an initiative designed to help states react to so-called fiscal dumping in support of embryonic OECD plans designed to fight tax transparency and cross-border tax evasion.

"We require coordinated mechanisms which prevent the displacement of revenues to tax havens," said Scholz.

The European Commission, the EU's executive arm, has proposed a European tax on "big tech" with susbstantial digital revenue in Europe, based on overall revenue in Europe and not just profits.

But lead opponent Ireland says a growing number of countries are grumbling about hidden problems with the tax, including that it could inadvertently snag European companies.

ADVERTISEMENT

There is also concern as to what consequences might flow from such a plan at a time against the backdrop of a potential full-blown EU-US trade war.

Berlin worries that cranking up the ante on trade with the United States by launching what Washington could see as an attack on Silicon Valley's corporate giants may threaten German auto exports.

Germany has already shown some opposition to a French plan to tax tech giants three percent of certain forms of revenue including advertising and sale of personal data.

French Finance Minister Bruno Le Maire said Thursday he will in the coming days urge EU members to commit to backing a tax.

A March proposal by the Commission includes introducing a tax as a bridge measure until such time as the OECD can roll out a measure which can be applied globally.

Enhance Your Pulse News Experience!

Get rewards worth up to $20 when selected to participate in our exclusive focus group. Your input will help us to make informed decisions that align with your needs and preferences.

I've got feedback!

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.
ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.ng

Recommended articles

We’re not stopping - Onakoya extends Guinness World record chess marathon target by 2 hours

We’re not stopping - Onakoya extends Guinness World record chess marathon target by 2 hours

'We have done it': Tunde Onakoya reaches 58-hour mark chess marathon

'We have done it': Tunde Onakoya reaches 58-hour mark chess marathon

Forgive me my papa - Self-acclaimed Hausa traditional ruler kneels to beg Oba of Benin

Forgive me my papa - Self-acclaimed Hausa traditional ruler kneels to beg Oba of Benin

Fubara grows Rivers IGR by over 100%, less than 1 year after Wike's tenure

Fubara grows Rivers IGR by over 100%, less than 1 year after Wike's tenure

Plateau University suspends exams over killing of student

Plateau University suspends exams over killing of student

Nigeria laughing stock of the rest of the world due to insecurity - TY Danjuma

Nigeria laughing stock of the rest of the world due to insecurity - TY Danjuma

APC group claims Tinubu’s initiatives stimulating economic recovery

APC group claims Tinubu’s initiatives stimulating economic recovery

Plateau Gov urges calm after attack that led to death of 200-level PLASU student

Plateau Gov urges calm after attack that led to death of 200-level PLASU student

NAFDAC reopens popular Ibadan supermarket shut for selling unregistered product

NAFDAC reopens popular Ibadan supermarket shut for selling unregistered product

Pulse Sports

Lionel Messi's son breaks the internet after scoring five goals for Inter Miami

Lionel Messi's son breaks the internet after scoring five goals for Inter Miami

Naija Stars Abroad: Onyedika, Boniface, and Osimhen shine across Europe

Naija Stars Abroad: Onyedika, Boniface, and Osimhen shine across Europe

Victor Osimhen and Tobi Amusan make list of Forbes’ 30 under 30 Class of 2024

Victor Osimhen and Tobi Amusan make list of Forbes’ 30 under 30 Class of 2024

ADVERTISEMENT
ADVERTISEMENT