The GSMA European telecoms demand changes OECD tax consensus designed to better tax big tech companies - First the G7, then the OECD and then the G20. Several international organizations have reached agreements to promote a package of tax measures that would imply, de facto, the birth of a new global corporation tax to try to tax more realistically the big tech companies, which try to pay the least amount of taxes possible with various techniques.
A very common practice of platforms such as Google, Facebook, Netflix or Amazon is the creation of subsidiaries in the markets in which they operate. However, these subsidiaries only invoice a small number of transactions, usually advertising, while the bulk of the business is invoiced through the parent companies in Europe that are usually based in countries with advantageous taxation, such as Ireland.
Before the OECD itself pronounced itself on this, which it did just a few months ago, countries such as Spain and France had approved their new taxes on digital platforms. Sánchez's government approved the so-called Google tax, which was expected to begin to be taxed from this same year.
It is likely that, as Europe has done, these countries will reverse. Especially after the Biden Administration's offensive. But just as the Spanish Google tax affected more types of companies, and not just the big tech companies operating in the market, the new global measures could incur the same challenge.
GSMA European telecoms demand changes OECD tax consensus
This is understood by the GSMA, organizer of the Mobile World Congress (MWC) and several European telecoms, who have claimed this week that their businesses should be exempt from the tax measures that are proposed and debated internationally.
The Register states in this article that both the GSMA (body that regulates and dictates standards in the mobile telephony industry) and the Network of European Telecommunications Operators (ETNO) regret that the OECD does not consider in its plans the specific circumstances of these companies.
GSMA European telecoms demand changes OECD tax consensus
In a statement, ETNO claims that none of the companies they represent have any problem with the spirit of taxing more and better technology. They simply claim that they, by the nature of their business, already pay a lot of taxes: also several types that other more digitized businesses do not.
In fact, they claim to be one of the infrastructure providers that pays the most taxes. "The telecommunications industry pays taxes for providing telecommunications services in multiple markets, in addition to the type of partnerships, VAT or radio spectrum usage fees."
GSMA European telecoms demand changes OECD tax consensus
The manifesto, posted on the GSMA website, also states that while the new tax measures that have been agreed in the OECD will mean the disappearance of the various Google taxes that have been approved in several states, these measures do not in themselves imply the disappearance of charges for Telecommunications Services as well.
In this way, European telecoms warn that they could suffer a double taxation. However, they ignore nuance that the fees for the use of the radio spectrum are not imposed as such, as The Register recalls.
In the same way, both the GSMA and the European telecoms do not propose to challenge all the tax measures that have been agreed in the OECD. They only ask for certain nuances, while recalling that"there is a lot of evidence of the positive impact of telecommunications infrastructures on the economy".
GSMA European telecoms demand changes OECD tax consensus
More news:
Banks that allow to forgive part of the debt that the self-employed have after having requested an ICO credit
When the coronavirus pandemic broke out in March 2020, the Government put in place different mechanisms to protect jobs and businesses. Perhaps the most famous and well-known were the ERTE, who have helped thousands of people to keep their jobs, but it is not the only remarkable measure.
If you are self-employed, it is very possible that during this last year and a half you have applied for a credit guaranteed by the Official Credit Institute (ICO). This funding channel has the objective of promoting economic activities and does not have opening or study commissions.
In March 2021, just one year after the first confinement, the credits guaranteed by the ICO reached 117,758 million euros, with most of the operations aimed at SMEs and freelancers. If you are in one of these groups it is possible that you received the help to continue your activity after the health crisis.
In this case, you should know that you have the option of reduced between 50% and 75% the amount you owe, as long as your bank is adhering to the Code of Good Practice set by the Government as a condition for handing out 3,000 million euros led to this plan, as stated in the Royal Decree-law 5/2021, 12 march.
There are 102 banks that have subscribed to the Code of Good Practice, the most important in the financial sector being found in this list. This condition is essential for you to be able to access debt forgiveness.
On July 30, it was already possible to know which banks had adhered to the Code of Good Practice. In this document of the Ministry of Economy you can find the 102 subscribed entities and the 26 that are not part of it and that do not allow the reduction of the debt.
Next, the entities with which you can forgive up to 75% of the debt of ICO credits and the entities that do not allow it are collected, so you can know what situation you are in.