G20 Chief Financial Officers Want to Endorse New Digital Tax Plan

FUKUOKA (Kyodo) – The Group of 20 advanced and emerging economies' heads of finance will commit to new international rules on corporate taxation in the digital space after their two-day meeting in Japan , Sunday.

G-20 finance ministers and central bank governors are also likely to share concerns over escalating trade tensions between the United States and China over the risk of a deteriorating global economy.

They will issue a joint statement at the end of the Fukuoka meeting to be held in the run-up to the G-20 summit in Osaka on 28-29 June.

The issue of digital taxation has attracted attention as multinational corporations, especially US giants Google LLC, Apple Inc., Facebook and Amazon.com Inc., were not paying their fair share.

Existing tax rules are based more on the location of the permanent offices of the companies than on the place where they make their sales.

The Organization for Economic Co-operation and Development (OECD) recently proposed to collect taxes more effectively from such information technology companies.

According to a draft statement obtained by Kyodo News, the G-20 will aim for a "globally just, sustainable and modern international tax system" and intensify its "efforts for a consensual solution with a final report by 2020".

On the subject of the global economy, Japanese Finance Minister Taro Aso, who chairs the meeting, said Saturday that he "will firm up in the second half of the year, although risks to the decline subsist ".

On the last day of the meeting, the financing of infrastructure projects in developing countries, among other difficulties to repay the loans contracted with China under the initiative "One Belt, One Road".

CFOs are also focusing on global current account imbalances as trade battles between the United States and its partners, including China, Japan and the European Union, spur more and more money. ;worry.

Measures against money laundering and the financing of terrorist groups through the use of virtual badets and the regulations applicable to operators of encrypted currency exchange systems will also be on the agenda.