Big Tech Companies to Be Hit by 'Historic' International Tax Agreement

Some of the world's richest countries have today reached a landmark agreement to close international tax loopholes used by some of the biggest multinational corporations, including big tech companies like Apple, Google, and Amazon (via Reuters).

g7 summit 2021
At the G7 summit in London, representatives of the U.S., UK, France, Germany, Canada, Italy, and Japan reached an agreement on a coordinated effort to support a minimum global corporation tax rate of at least 15 percent and committed to ensure that multinational corporations pay taxes in the countries where their business operates.

"After years of discussion, G7 finance ministers have reached a historic agreement to reform the global tax system to make it fit for the global digital age," said the United Kingdom's Chancellor of the Exchequer, Rishi Sunak.

The joint accord, which is expected to form the foundation of a global pact next month, is aimed to stop what U.S. Treasury Secretary Janet Yellen called "thirty-year race to the bottom on corporate tax rates," where countries have felt compelled to slash tax rates and introduce exemptions to remain appealing to corporate giants.

The deal will put pressure on other countries to follow suit and join the agreement. A meeting of the G20 next month is expected to continue the talks with a wider group of nations, including Argentina, Australia, Brazil, China, India, Indonesia, Mexico, Russia, Saudi Arabia, South Africa, South Korea, and Turkey.

Any broader, final agreement could have repercussions for low-tax countries and tax havens, such as Ireland, where Apple is headquartered outside the U.S. Low-tax countries are expected to try to build support for a minimum rate as close as possible to around 12.5 percent or seek exemptions.

American multinationals play a significant role in Ireland's economy, attracted by the country's "BEPS" tools, that protect their non–U.S. profits from the U.S. "worldwide" corporate tax system, and provide an effective Irish tax rate of zero to 2.5 percent. As a result, large multinational companies, particularly in the technology industry, such as Apple, Google, Amazon, and Facebook, are expected to be heavily impacted by the new international tax plans.

The agreed minimum corporation tax rate of 15 percent is still above the level in countries such as Ireland, but below the lowest level in the G7. The 15 percent rate is lower than the 21 percent that was expected ahead of the summit, and some countries, such as France, are arguing that the 15 percent rate should be viewed as a base level for setting a higher, more ambitious rate.

A move toward making companies declare their environmental impact in a standardized way, primarily so that it is clearer to investors, was also agreed upon.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Top Rated Comments

Reason077 Avatar
21 weeks ago
About time.
Score: 79 Votes (Like | Disagree)
kalsta Avatar
21 weeks ago

If people think that APPLE … is going to take a 15% tax increase and just live with it then think again! How about a 15% increase in their pricing for that shiny new iPhone is more like it. Or like whats happening in the grocery stores it's the same price but less product.
You might want to check your assumptions and your maths… 15% tax would only be a 15% “increase” if they currently paid no tax at all. But even if it did increase by 15%, that’s tax on profit, which is only a fraction of the retail price. So a 15% tax increase does not translate to a 15% rise in retail price.

The tax system exists to pay for essentials (roads, hospitals, etc), not to subsidise the price of shiny new toys (iPhones, etc). Let big corporations pay their fair share.
Score: 39 Votes (Like | Disagree)
scottishwildcat Avatar
21 weeks ago

All that has happened is that prices WILL be going up.
And that's also fine. The market will support what the market will support.
Score: 37 Votes (Like | Disagree)
bgraham Avatar
21 weeks ago
Great to see. It’s starting to feel like the end of 50 years of failed trickle down economics.
Score: 31 Votes (Like | Disagree)
ArPe Avatar
21 weeks ago
Good, it will work out.

Many companies barely declare much profit anyway. So many run on debt. So many run up expenses and debt so they can evade taxes. Some fake their expenses. Some fake their sales and hire pump and dump teams to manipulate stonks.

So there has to be a higher tax and the money gotta be spent on educating young people not to be crooks, be responsible, invest and grow safely, be sustainable not a greedy pig. Education system in the West especially in US is ranked soooo low compared to even Vietnam. No wonder the society wants to fight and eat each other and chase different scams all day.
Score: 28 Votes (Like | Disagree)
project_2501 Avatar
21 weeks ago
what do you mean "hit by"

we aren't "hit by" our responsibility to society- the same society that enabled us to develop and continue to work with many safety nets and comfort
Score: 17 Votes (Like | Disagree)

Related Stories

appstore

Apple Raising App Store Prices in Chile, Mexico, Saudi Arabia and Turkey Due to Tax Changes

Tuesday September 1, 2020 11:22 am PDT by
Apple today began informing developers of upcoming App Store pricing changes in several countries due to tax changes, with the prices of apps and in-app purchases affected. Prices are shifting in Chile, Mexico, Saudi Arabia, and Turkey. Chile: New value-added tax of 19% Mexico: New value-added tax of 16% Saudi Arabia: Increase in value-added tax from 5% to 15% Turkey: New...
iphone 12 120hz thumbnail feature

LTPO Displays Supporting 120Hz Refresh Rates Again Rumored for iPhone 13 Pro Models

Friday April 16, 2021 10:01 am PDT by
The two higher-end "iPhone 13 Pro" models that are coming in 2021 are expected to use LTPO display technology to enable 120Hz refresh rates, according to display analyst Ross Young. Young reaffirmed the detail in a tweet that said he'd heard rumors about only one model featuring LTPO, which he says is inaccurate. Heard some rumors in the industry and media that there would only be one ...
All iPhones on iOS 14 6

iOS 14 Now Installed on 90% of iPhones Released in Last Four Years

Friday June 4, 2021 10:35 am PDT by
iOS 14 is now installed on 90 percent of iPhones that were introduced in the last four years, according to updated iOS 14 adoption rate numbers shared by Apple. Eight percent of iPhones introduced in the last four years run iOS 13, while two percent continue to run an earlier version of iOS. 85 percent of all iPhones (including those older than four years) are running iOS 14, with eight...
apple pay contactless terminal

Apple Pay Expected to Launch in Israel Early Next Month

Thursday April 22, 2021 1:55 am PDT by
After several false dawns, Apple Pay looks finally ready to come to Israel early next month, based on local reports. According to Hebrew-language site Calcalist, barring a last-minute change, Apple is expected to launch its digital payment system in the country in the first week of May. Several previous reports over the last year have hinted at an imminent Apple Pay launch in Israel, but...
tmobile 5g modem

T-Mobile Launches Unlimited 5G Home Internet for $60/Month

Wednesday April 7, 2021 2:18 pm PDT by
T-Mobile today hosted an Un-carrier event where the company announced the launch of a a new 5G home internet plan, which is priced at $60 per month and offers unlimited data. The service is available to more than 30 million Americans across much of the United States, including 10 million households in rural areas not typically able to access reliable broadband. Connectivity will be either 4G ...
apple maps ratings system ios 14

Apple Maps Native Ratings System Coming to US Places of Interest, Perhaps as Early as Next Week

Thursday April 22, 2021 3:43 am PDT by
With the release of iOS 14 and macOS 11, Apple introduced a new way for users to review places of interest and upload photos to Apple Maps that doesn't rely on third party integrations like Yelp and TripAdvisor. Users who tap a marker for a place on the map that they have physically visited are offered the ability to recommend a place using a thumbs up/thumbs down rating that can also...
nba tracking prompt orange

Two-Thirds of iPhone Users Expected to Block Ad Tracking

Friday April 9, 2021 7:19 am PDT by
As many as 68 percent of iPhone users are expected to deny advertisers permission to track them thanks to Apple's App Tracking Transparency feature, in what is beginning to look like a significant blow to the advertising industry (via AdWeek). With the launch of iOS 14.5, apps will have to receive explicit user permission before accessing an iPhone's advertising identifier or IDFA, which is...
qualcomm snapdragon x65

Qualcomm's Snapdragon X65 Modem Upgraded With Wider mmWave Coverage Ahead of Inclusion in 2022 iPhones

Wednesday May 19, 2021 8:00 am PDT by
Qualcomm today announced it has upgraded its Snapdragon X65 5G modem with improved power efficiency and support for wider mmWave carriers, a key requirement ahead of the rollout of 5G mmWave networks in China. Specifically, the modem now supports wider 200MHz carrier bandwidth in the mmWave spectrum and mmWave in standalone (SA) mode, while new power-saving technologies part of Qualcomm 5G...
European Commisssion

EU Moves Forward With Appeal Against Apple's 'Contradictory' Tax Case Victory

Monday February 1, 2021 5:08 am PST by
The European Union has set out its grounds of appeal against Apple's victory in its $13 billion euro ($15.8 billion) tax dispute, saying that judges used "contradictory reasoning" when they ruled that Apple's business in Ireland was not liable for significant payments (via Bloomberg). In a summary of its appeal published earlier today, the EU set out its determination to challenge the court...
iphone 5g mmwave

Greater Share of iPhone 13 Models Expected to Support Ultra-Fast mmWave 5G

Tuesday June 1, 2021 11:03 am PDT by
More than 50% of iPhone 13 models set to be shipped later this year will support mmWave, according to a paywalled preview of a DigiTimes report, in line with rumors that mmWave will be supported in more regions. "Apple will launch its next-generation iPhone series - tentatively dubbed the iPhone 13 - later in 2021, according to industry sources, which believe that more than 50% of the total...