WebTax: tax the Big Tech where they generate profits

WebTax: tax the Big Tech where they generate profits

Several times announced, the infamous WebTax continues to wait, if only because its application within the OECD requires the prior opinion of 130 countries. This time, however, a first draft was drafted that could bring all the markets in agreement, probably excluding what could be most affected: the USA.

According to the latest paper proposal, states should have the prerogative to tax a share of global profits generated by large companies with high profits even when the latter are registered in different jurisdictions. In fact, the WebTax has precisely this goal, to prevent multinationals from paying only the taxes required by the country in which they are based.

If this measure were to be approved, it would also involve those companies that do not have a physical location in the foreign state in which they operate and produce turnover. In essence, the effects of the so-called would be bypassed territorial agreements, reason for which it will not be possible to refer to the agreed taxation for the opening of a registered office with the aim of not paying the amount due in the other markets reached.

According to the content of the draft, a state will be able to calculate the WebTax rate based on the turnover generated by a company in the reference territory. To tax the activity of a company, including those that operate solely online, it will suffice that these have created an economic link with the consumers of a given nation.

The proposal also provides for special conditions to be applied in the emerging economies where in most cases the Big Companies do not activate their own physical premises, in these cases the distribution of the products will be taxed and the companies will still have to pay a minimum fee to be allocated to the country in which they conduct their business.

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