- Facebook Inc (NASDAQ: FB), Amazon.com Inc (NASDAQ: AMZN), Apple Inc (NASDAQ: AAPL), Microsoft Inc (NASDAQ: (MSFT)), and Google-parent Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) shares traded lower between 0.1% and 0.5% after the Group of Seven (G7) advanced economies agreed to back a minimum global corporate tax rate of at least 15%, Reuters reports.
- The G7’s proposals target technology companies that sell services remotely and ascribe the majority of their profits to intellectual property held in low-tax jurisdictions.
- The deal wouldn’t dent big tech unless countries like Ireland agree to the G7 agreement, as the tax haven’s economy booms with billions in investment from big tech due to lower taxes.
- Dublin has endured European Union’s stance to harmonize tax rules and is unlikely to accept a higher minimum tax rate.
- The focus of the deal has shifted to G20 countries for wider acceptance.
- Previously, President Joe Biden proposed a similar tax slab for organizations including Google, Amazon, and Apple that were escaping taxes, citing research and development, foreign credits, and stock-based compensation.
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