Although taxation is planned, the Finance Minister argues that it should not be a “taxation”, but an international regulation
The Minister of Finance, Fernando Haddadsaid this Wednesday (11.Sep.2024) that “it’s past time” to regulate the big techs –big technology companies, such as Google, Facebook and other companies. According to him, government Luiz Inacio Lula da Silva (PT) must adopt measures in 2024 to “safeguard the country’s sovereign rights in relation to these activities.”
Haddad said that Brazil was waiting for countries to adhere to pillars 1 and 2 of the OECD (Organization for Economic Cooperation and Development), which are international taxation measures. According to the minister, it is a global process to tax correctly.
“It is not a tax, per se. It is an international regulation that is being made to determine what is taxed in the country where the service is provided and what is taxed in the host country.”he said. “Brazil can and probably will take steps this year to safeguard the country’s sovereign rights in relation to these activities”he completed.
Haddad stated that it is “something already due” and which, therefore, does not constitute a taxation of big techs, despite taxation being foreseen.
The minister argued that the international agreement still depends on the adhesion of “a few countries”. He said that nations that have already agreed to charge big tech are anticipating regulatory measures “even to force countries that have not adhered to pillars 1 and 2 to take action”.
“It is unfair, given the nature of the service provided, that the tax is not collected here or at the company’s headquarters. Brazil welcomes the OECD proposal, but there must be consequences. It is high time to regulate this.”he said.
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