July 5, 2020

Gurría proposes to the US discuss with France the digital rate quickly

The OECD Secretary General, Mexican Angel Gurría, proposed to the US Treasury Secretary, Steven Mnuchin, to go to Paris, preferably before Christmas, to discuss with him and the French Finance Minister, Bruno Le Maire, about a multilateral digital rate.

In a letter on Wednesday in response to which Mnuchin had sent him hours earlier, Gurría took the floor at the declared will of the Secretary of the Treasury to "facilitate a multilateral agreement" that ends individual digital tax initiatives, in reference to the digital rate created by France that Washington considers discriminatory with its interests.

The Secretary General thanked his "strong support" for the discussions that take place within the framework of the OECD and said that he shares his idea that "a global solution is needed to stop the proliferation of unilateral measures."

He also thanked him personally for his involvement in that process during the last two years and stressed that it was the tax reform in the United States that has laid the groundwork for progress.

But at the same time, Gurría did not deprive himself of noting that the OECD on its side has already carried out two public consultations with the actors involved throughout the world in which it has agreed on the need for greater fiscal certainty.

And he said he was afraid that the US proposals of the international tax regimes would jeopardize the calendar that had been marked for his agreement the 135 countries involved, hence his call to go to Paris to discuss this month.

Mnuchin wrote to Gurría after US President Donald Trump announced earlier this week that he will impose tariffs of up to 100% of the value of certain French imports valued at a total of 2.4 billion dollars in response to the digital rate created by Paris.

This tax approved by the French Parliament this summer, which has retroactive effects dated January 1, 2019, sets a tax of 3% on the turnover of the digital business for companies whose worldwide sales in that activity are over 750 million of euros in the world and 25 million in France.

The fee covers three activities – online advertising, the sale of personal data and intermediation – and the French Government, which expects a return of about 400 million euros this year, has committed to withdraw it as soon as there is an international device that replace it.

. (tagsToTranslate) Gurria (t) USA (t) discuss (t) France (t) quickly

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