Amazon, Facebook To Fall Under New G7 Tax Rules
US Treasury Secretary Janet Yellen has confirmed that both Amazon and Facebook will come under new proposals for a global minimum corporation tax, agreed by the so-called Group of Seven on the weekend.
Asked whether the two companies would be covered by the proposal, Yellen said: “It will include large profitable firms and those firms, I believe, will qualify by almost any definition.”
A joint statement by G7 finance ministers on Saturday said it would tackle tax avoidance by the largest and most profitable multinational enterprises.
Amazon has lower profit margins than most other tech companies, and EU countries had been concerned it would escape extra taxation under initial US proposals to the G7.
Australia’s Federal Government and the Opposition have both welcomed the move, but it’s still unclear whether Canberra will impose the new tax.
The Business Council of Australia says the 15 percent rate agreed to by G7 shows Australia’s corporate tax rate of 30 percent is too high.