European Union finance ministers failed to agree on a tax on digital income, despite a last-minute plan by Germany and France to save the proposal.
The EU’s executive arm proposed a 3 percent tax on digital firms such as Facebook and Google, saying these companies tend to channel profits to countries with lower taxes.
The collapse of the agreement is a heavy blow for the French president, Emmanuel Macron, and his government, which has invested considerable political capital for this tax, Telegraph reports.
Companies that profit from Google and Facebook advertising would be hit hardest by the Franco-German proposal.
The tax requires the support of 28 member countries, including those that offer low taxes such as Ireland, and according to the first proposals, the tax was supposed to enter into force in January 2021.
Germany advocated expanding climate finance contributors to include wealthy, high-emission countries like China and Saudi Arabia, emphasizing the need for increased funds to support developing nations.
The U.S. Department of the Treasury and IRS have released final rules on Inflation Reduction Act provisions that aim to expand the reach of the clean energy tax credits. The Act created the new elective
Cyprus has recently enacted important tax measures that restrict the deductibility of certain expenses involving entities established in jurisdictions considered “non-cooperative” or “low tax.”
Over the past two weeks, United Nations member countries started substantive negotiations for the first-ever UN Framework Convention on International Tax Cooperation; a historic process that reflects