G20 nations are planning to change how they tax digital giants. The Nikkei business daily reports companies such as Google will be taxed based on the business they do in a country, rather than where they are headquartered.
It’s believed the basic policy will be signed by G20 finance ministers when they meet next month in Fukuoka, Japan, ahead of the main G20 meeting, which is to be held in Osaka.
The policy would “allocate revenue to countries that provide large user bases for the world's digital corporate giants”, the publication reports, citing unnamed sources. This policy would target international conglomerates such as Google, Apple, Facebook and Amazon.
The countries will aim to reach a final agreement in 2020. How the policy will work remains largely undetermined, but one possibility would be to distribute collected tax revenues by looking at the number of users each company has within each country. The Organisation for Economic Cooperation and Development (OECD) is expected to help finalise the rules.