German Finance Minister Olaf Scholz said on Friday it is expected that the Organization for Economic Cooperation and Development will agree on a minimum level of taxation for digital companies such as Amazon, Google and Facebook by mid 2020.
He also said he expected progress from the third quarter of 2019 to introduce a financial transaction tax in at least nine EU countries.
Scholz at a press conference following a meeting of EU finance ministers. said: “We discussed the taxation of large companies, especially in the digital economy.”
“We are on the way for an international agreement at the OECD level, but also in the G7 and G20,” Scholz said. “I expect that by the summer of next year we will reach an agreement in the OECD on minimum tax … We will need at the same time an agreement on corporate taxes in order to lead to a better taxation of the digital economy” .
France has proposed to help finance a future budget for the eurozone from taxes on digital companies, but some countries are cautious about this action unless it is based on a global scale not to put Europe at a disadvantage.
Scholz also said he was looking forward to another potential source of funding for the upcoming eurozone budget, the financial transaction tax, up to the third quarter of this year.
He said: “It seems that extended cooperation will show results in the summer, we are working on the legal text, the basis for it is the Franco-German proposal, we are trying to convince smaller states, expect that German income from tax will be around 1.2 billion euros. The effort would be paid “./Investing.com