The U.S. investigation targets nine countries, plus the European Union, that have adopted or are considering new taxes that would hit American companies like Google and Amazon. From a report: The Trump administration said on Tuesday that it would open an investigation into taxes on digital commerce that have been adopted or proposed in nine countries and the European Union, escalating a global battle that will affect where big American tech companies like Facebook and Amazon pay taxes. The administration’s move could ultimately lead to American tariffs on imports from Brazil, Britain, India and a host of other countries, heightening the chances of another global trade dispute that results in retaliatory taxes on U.S. goods.
The investigation, which will be conducted by the United States Trade Representative, could also complicate global negotiations that have been underway for more than a year and are aimed at reaching a multinational consensus on how to tax internet commerce that crosses borders. At issue are efforts spreading across Europe and beyond to impose so-called digital services taxes on economic activity generated online. Those taxes deviate from many traditional international tax regimes by affecting revenues earned by a company where they are generated — regardless of whether the company has a physical presence there. For example, India imposed a 2 percent tax in April on online sales of goods and services to people in India by large foreign firms. The European Union has revived its push for a similar tax as a way to help fund response measures to the coronavirus.
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Source: Slashdot – Trump Administration Escalates Global Fight Over Taxing Tech