The G20 officials on Saturday agreed that the leading world industries have to stand in unity if they are to charge the tax appropriately the global tech companies that are the best like Google, Amazon, and Facebook.
Currently the rules are developed by the Organization for Economic Cooperation and Development (OECD). The digital companies pay tax as per the laws framed by the body. The taxes are paid where these companies do their business rather than the place where their subsidiaries have been set up.
The OECD believes that this could help to increase the total tax revenues by more than $100 billion per year.
The unification was mainly done against the US which boasts of the world’s largest tech companies most of which were started as new start-ups. Due to their outright thinking and unique business ideas they have emerged as the industry leaders in their sectors like Google, Amazon, Apple, Facebook etc.
The officials of the G20 are trying to bring in the changes as fast as possible and are not willing to wait till the results of the American presidential elections come out in November.
The G20 meeting is being held in the city of Riyadh in Saudi Arabia. The latest concerns such as the coronavirus outbreak and the taxation regimen of the tech companies have been discussed so far.
The members of the OECD want to have a minimum level set at which all the global tech giants would be taxed and is trying to bring in the changes as early as the beginning of July this year.
In fact, last year only the efforts of the OECD was halted by the US government which the OECD officials reluctantly protested saying that such matters are tricky and needs urgent solution rather than waiting for a year for the elections in the US.