Officials from 137 governments have started working on new international tax rules to regulate the payment of taxes through technology gloves.
The new rules are designed to ensure that tech companies start paying taxes in each country where they operate. The goal is to prevent them from finding tax creativity solutions that allow, for example, to channel most of the profits into a low-tax country. These rules will have an impact on companies such as Apple. For years, Cupertino has paid very little tax using Ireland as its European headquarters, channeling all the profits from European Apple stores.
More than 130 countries agree to have to reform international tax rules, as many of them date back to the 1920s and are out of date.
Work has started these days, with the OECD planning to reach a final agreement in a few months. Meanwhile, more and more countries are working on national rules to regulate their digital tax for multinational companies in the tech world. However, the objective of the OECD is to come up with a common standard capable of bringing everyone together.
Apple CEO Tim Cook supported the OECD initiative, saying there is a need to regulate the taxation of multinationals internationally: I think what we all know and that the most logical thing is to reprogram the tax system. I would certainly be the last person to say that the current or past system was the perfect system. I am confident and optimistic that the OECD will find a solution.
Until then, Apple is awaiting the outcome of the appeal against the European Commission's decision to order the company to pay 13 billion euros in unpaid taxes in Europe.