SAE hosted summit of G20 nations during the weekend, which was held to discuss coronavirus epidemic
Yet, tech company taxations turned out to be the most problematic issue.
It has long been known that the US and Europe have different opinions of digital taxation. While the US demand international tax system for tech companies, European countries have very different approach. They disagree with the fact that many companies residing in the US come to Europe without paying taxes.
Moreover, Europe perceives digital tax amount proposals as insufficient. The US prefer low taxation, while Europe asks for higher. “Our citizens can no longer accept paying their due level of taxes, while larger companies in the world keep escaping taxes,” said Bruno Le Maire, France’s minister of economy and finance. According to him, it’s important to reach an agreement, otherwise there’s high risk of chaos.
Taro Aso, Japanese Minister of Finance, agrees with the French government and criticizes the US proposal. He says that such a proposal excludes the possibility to reach a compromise. “It could undermine regulatory effect, which we aim to reach with digital taxes,“ Aso said.