The UK is one of many countries seeking “financial services exemptions.”
Prime Minister Rishi Sunak is seeking exemptions from the city of London in the G7 moves of the new global tax system targeting the world’s largest multinational corporations.
Sunak previously said the recent contracts are “historic,” but the biggest tech companies will force them to “pay fair taxes in the UK.”
However, the Financial Times reported that the UK is one of many countries seeking a “financial services exemption.” The Prime Minister fears that London-based multinational banks will be affected.
HSBC accounts for more than 50% of its revenue from China, but the UK-based Standard Charter focuses primarily on Africa and Asia, with little activity in the UK.
Sunak’s move comes as think tanks warned that the largest US tech companies will pay less UK taxes under the G7 arrangement than they are currently.
Tax Watch suggests that the final payment could be made at 50% of what is normally paid, and based on 2019 figures, Amazon, eBay, Google and Facebook could save £232.5 million a year. It’s there.
The survey added that Google would pay around £219 million in digital services tax, but would pay just £60 million to UK ministries based on current plans.
Similarly, for Facebook, the acquisition of that tax would be reduced by £30 million to £28 million. Amazon will pay a £40 million decline and eBay will pay a tax reduction of £15.2 million.
Companies will pay more taxes in total, but the US Treasury will benefit the most.
This transaction will incur a global minimum tax of 15% on the world’s largest companies.
The aim is to “finish the 30-year race at the corporate tax rate at the bottom,” as US Treasury Secretary Janet Yellen puts it.
