Zuckerberg acknowledges that Facebook will have to pay more taxes

the Head of Facebook, mark Zuckerberg admits that the global tax reform means that the giant social networks, you may have to pay more taxes in different countries, reported Politico, citing excerpts from the speech, he should say Saturday.

cross-border tax rules should be rewritten after last month 137 States have tried to avoid new trade wars because of the global multiplication of taxes on digital services.

“We agree that [the reform] could mean that we have to pay more taxes and pay them in different places under the new legislation, — quotes the edition of words from the upcoming speeches of Zuckerberg, which he is expected to say at the Munich security conference, according to Politico.

State officials have agreed to discuss new rules for the taxation of profits for companies that have no physical presence in the market, but, nevertheless, serve the citizens, said last month the Organization for economic cooperation and development (OECD).

“I understand that there is disappointment in Europe are subject to tax technology companies. We also want tax reform, and I am glad that the OECD is considering this issue”, — quotes Politico-planned speech Zuckerberg.

Amazon, Facebook and Google often record profits and pay taxes in countries with low taxation, such as Ireland, regardless of where their customers are located.

an increasing number of countries preparing national tax laws due to the lack of global revision of the rules, despite the threat of retaliatory actions of Washington against trade tariffs.

So, last fall in France was adopted the bill to introduce “tax GAFA” (the acronym stands for Google, Apple, Facebook and Amazon) that provides for the imposition of additional tax of 3% of revenue international technology companies received by them in France. Fall under its scope only those companies whose annual turnover is at least €750 million, at least €25 million of them should be received in France. Later, a similar law was passed in Italy — only there it applies to companies earning in Italy of at least €5.5 million.

This decision has caused serious criticism from Washington, the US President Donald trump said about the possibility of a tax on French wine. Later, the President of France Emmanuel macron promised that once the digital tax at the international level, the tax in France canceled. Office of the U.S. trade representative said that the French tax aimed at American companies, because it applies to services that are dominated by IT-companies in the United States.

Officials intend to reach agreement by the end of 2020. If an agreement within the OECD is not signed, the European authorities will pursue the adoption of the bill at EU level.

Many countries complain that American technology companies are paying too little income tax in the territories where they have users, and still most of them refrained from levying their own national taxes. However, some European countries such as the UK or Canada who are potentially ready to introduce a new tax regime for U.S. IT companies.

the Wall Street Journal recently published a letter that the Treasury Secretary Steven Mnuchin sent to the address of the Organization for economic cooperation and development. According to the document the US has serious concerns in relation to changes in mandatory rules, when countries have the right have the right to set the taxation for individual companies. This may affect established bases of international tax system relied on the American taxpayers writes Mnookin. The Finance Minister urged the countries participating in the OECD to stop the use of digital taxes.