Apple Magazine - USA - Issue 434 (2020-02-21)

(Antfer) #1

Zuckerberg will tell the conference that he’s
glad that that the OECD is looking at tax reform,
which Facebook also wants.


“And we accept that may mean we have to pay
more tax and pay it in different places under a
new framework.”


The OECD plans would require digital and
internet companies, including social media
platforms, to pay more tax in countries where
they have significant consumer-facing activities
and generate profits.


The current system for taxing multinationals
is based on where they are physically located,
which sees internet companies such as
Facebook pay the majority of their tax in the
United States.


The situation is even more complicated in the
European Union, where multinationals largely
pay taxes on business done across the region
in the one country that serves as their EU base,
often a low-tax haven.


Tech companies have faced criticism for not
paying enough tax in come countries. The
U.S., meanwhile, has criticized the OECD plans,
arguing they discriminate against big Silicon
Valley companies.

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