The GSMA and the European Telecommunications Network Operators’ Association (ETNO) will offer their members a proposed global tax exemption aimed at paying a fair share in the countries where large multinational corporations (MNCs) operate. I asked.
Last month, the G20 group and the Organization for Economic Co-operation and Development (OECD) approved a worldwide corporate tax of at least 15 percent on multinational corporations aiming to end tax havens.
Approval was obtained from 132 countries and territories that participated in the “Two Pillar Plan” to end global competition for the lowest corporate tax rates. Many countries do this to attract investment from giants like Amazon.
In June the members of the G7 countries agreed on a draft global tax agreement. Their goal was to protect multinational corporations from tax evasion by filing profits in low-interest countries like Ireland and Luxembourg.
The GSMA and ETNO appreciate the spirit of the OECD / G20 Comprehensive Framework, but members are exempt from it because they have already paid “a lot” of taxes, including those not paid by other organizations. It says it should.
“The framework taxes large multinational telecommunications companies that have already paid a significant percentage of their taxes, with the original purpose of taxing digital services in the jurisdiction in which their customers live. We have moved to a wide range of uses that we can enforce. “Written by two groups.
You said the telecommunications industry already pays corporate tax, value added tax, spectrum license fees and unilateral telecommunications services tax (TST) in many markets.
The group said the OECD plan would abolish the tax on digital services, but there was no proposal to abolish the TST, which means telecommunications would effectively pay double taxation.
The group also offers exemptions for some infrastructure service companies as the profits are related to the country where the infrastructure is located, although they may operate in multiple countries. Particular attention has been paid to specific proposals made by the OECD, which it recommends to be implemented.
“The expansion and maintenance of the telecommunications infrastructure requires long-term investments and stable investment periods, and the industry has the right to a fair return on investments in the infrastructure,” said the duo. Did.
The motion comes months after a report by the Fair Tax Foundation claims that the United States’s largest tech company paid around $ 100 billion less in taxes over the past decade than its annual report said.
According to the campaign group, “Silicon Six” (Alphabet, owner of Amazon, Apple, Facebook, Microsoft, Netflix and Google) paid around $ 219 billion in income tax between 2011 and 2020.
The report also claimed that if six companies made headlines where they do business, they would pay about $ 149 billion less than expected to global tax authorities.
Amazon and Facebook are considered the worst tax evasion criminals.