Japan Aims to Discuss Digital Taxes at G-20 Next Year
Newsfrom JapanPolitics Lifestyle
Tokyo, Oct. 31 (Jiji Press)--Japan aims to discuss taxation on global information technology giants mainly at a meeting of top finance officials from the Group of 20 major and emerging economies it hosts next year, officials have said.
The Japanese government's Tax Commission is discussing such taxation, while Britain has taken a step ahead by announcing on Monday a plan to introduce a digital services tax on major IT firms.
From April 2020, Britain will impose a 2 pct tax on revenues that major operators of search engines, online shopping sites and social networking services earn locally from users in the country.
Many countries face the difficult problem of how to collect taxes from foreign IT giants, such as Google Inc. and Amazon.com Inc. of the United States, that generate huge profits around the world without setting up local bases.
Under the current global rules, governments cannot tax foreign companies with no major bases, such as plants and branches, within their jurisdictions.
[Copyright The Jiji Press, Ltd.]