Re:EU adopts global minimum 15% tax on big business
by colechristensen on Friday December 16, 2022 @02:47PM
(#34019277)
Digital services are taxed where the services are rendered. In other words, the location of the user.
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Re:EU adopts global minimum 15% tax on big business
by betaby on Friday December 16, 2022 @02:51PM
(#34019340)
VAT taxed in this case, sure. Those are taxes on consumers. Article is bout corporate profit taxes.
Re:EU adopts global minimum 15% tax on big business
by colechristensen on Friday December 16, 2022 @02:52PM
(#34019368)
Likewise corporate tax should be in the jurisdiction where services are rendered. You sell something digitally in a market then you are locating yourself in that market and that’s where you should pay tax on profit for goods sold there.
Re:EU adopts global minimum 15% tax on big business
by tdhoot on Friday December 16, 2022 @03:15PM
(#34019697)
It's not that trivial to track down.
Say a US company's French subsidiary sold something for $10 in France. If the software is developed in the US, then the US company will say it cost them $9 to develop in the US, so then they only have pay profits on $1 in France. Then in the US, they will say they paid $3 in costs and sold the software to their French counterpart for $9, booking $6 of profits in the US at a lower rate.