'More Taxes on Apple and Google' US Withdraws Opposition to Digital Tax

Yellen "Will Not Advocate for Safe Harbor" Regulation
France Immediately Welcomes Amid US Conflict

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The Joe Biden administration in the United States drew attention on the 26th (local time) by expressing a position that it may give up protecting domestic companies in the digital taxation negotiations of the Group of Twenty (G20).

Janet Yellen, U.S. Treasury Secretary, said at the G20 Finance Ministers and Central Bank Governors virtual meeting held on the 26th (local time), "The United States will no longer insist on the 'safe-harbor' regulation."

The safe-harbor regulation is a rule that applies the European digital tax, led by France, selectively rather than mandatorily imposing it on all companies.

The previous Donald Trump administration insisted on safe harbor against taxation targeting domestic information technology (IT) companies. France rejected this, leading to conflicts between the two countries, including retaliatory tariffs.

Digital tax is a tax imposed on digital companies operating across borders, such as Google, Facebook, Amazon, and Apple.

The Wall Street Journal (WSJ) reported, "The United States has abandoned the Trump-era proposal opposing Europe’s attempt to impose higher taxes on tech companies," removing one obstacle in the tax system of the digital economy.

Bruno Le Maire, France’s Minister of Economy and Finance, tweeted that Yellen’s announcement is a "tremendous progress" and that "an international agreement to tax digital companies is within reach."