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Global Tax On Tech Giants Now ‘Highly Likely’ As EU And US Eye Summer Agreement

by : Julia Banim on : 31 Jan 2021 17:12
Global Tax On Tech Giants Now 'Highly Likely' As EU And US Eye Summer AgreementPA Images

The implementation of a global tax on tech giants is now expected to be ‘highly likely’ as the EU and the US eye up a summer agreement.

The Organisation for Economic Co-operation and Development (OECD) reportedly wants to reach an international agreement on how to tax Silicon Valley tech firms by this summer, after having failed to reach such a deal back in 2020.

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Digital taxes proved to be a source of contention between the EU and the US during the presidency of Donald Trump. However, President Joe Biden’s new administration has indicated that it will actively engage with OECD negotiations.

Olaf ScholzPA Images

The new administration has fuelled fresh hope among European officials that a global agreement will be reached soon, with German Finance Minister Olaf Scholz telling CNBC’s Annette Weisbach that it is now ‘highly likely’ that a tax deal will be made before a summer deadline at the OECD level.

Speaking the very next day after having had a positive telephone call with new US Treasury Secretary, Janet Yellen, Scholz told CNBC that he is ‘really confident that we’ll get an agreement’:

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It is highly likely that we will get the success we are working for so hard.

And the new administration gave me the impression that they understand the need for an agreement in this field and that they will work on solutions together with all of us, which I think is a big, big success. And anyone knows that the timetable is very strict, we have to agree in summer.

Janet YellenPA Images

Scholz added that a ‘pragmatic approach’ in the US-European relationship appeared to be making a return, noting that he saw a ‘good chance for a new transatlantic partnership’.

During a Senate confirmation hearing held last week, newly appointed Yellen was seen to back calls for a new global levy on leading tech firms, sparking optimism among EU officials.

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Julia Banim

Jules studied English Literature with Creative Writing at Lancaster University before earning her masters in International Relations at Leiden University in The Netherlands (Hoi!). She then trained as a journalist through News Associates in Manchester. Jules has previously worked as a mental health blogger, copywriter and freelancer for various publications.

Topics: News, EU, Now, US

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    Global tax on tech giants now ‘highly likely,’ German minister says after Yellen call