US Treasury Secretary Janet Yellen said Thursday she was “not sure” whether Amazon will have to pay under a global minimum tax that she encourages countries, including hers, to adopt.
The landmark deal putting in place a minimum corporate rate of 15% is supposed to help end large multinationals looking for low corporate tax countries in which to record their profits instead of paying where they operate. .
The plan would also allow countries to tax a share of the profits of the world’s most profitable countries, no matter where they are based. But that would only apply to large international companies with profit margins above 10%.
When asked in an interview with CNBC whether Washington would be able to levy taxes on Amazon as part of the deal, Yellen replied, “It depends on whether or not they will break even, and I’m not sure. “
Despite Amazon’s colossal footprint and market capitalization of over $ 1,000 billion, its profit margin last year was only 6.3%.
Amazon, which has used optimization devices to reduce its tax bill, has been the target of levies imposed unilaterally by countries such as France, Italy, Spain and Great Britain.
These will disappear once a global deal goes into effect and the company signals its approval of the deal.
More than 130 countries have already agreed to international tax reforms, and on Saturday G20 finance ministers – the world’s 19 largest economies plus the European Union – backed the deal.