The organization for economic cooperation and development (OECD) has prepared a tax reform ethnic IT-companies, which will allow to replenish the budget of the countries in which they operate, writes the Associated Press.

The OECD proposes to extend the current French law on taxation of income of the global digital companies on the territory of a particular country on the largest possible number of States.

The offer applies to income from the sale of digital content such as software, which does not require you to have an office in the country of the buyer. Currently, such income is taxed in the country of incorporation of the seller, and the largest companies benefit from this by registering in States with low rates. Thus, the European division of Apple and Google is registered in Ireland, where the rate of income tax equal to 12.5 per cent and is one of the lowest in Europe.

Since the beginning of 2019 in France has started to operate a three percent tax on income from sales of digital products to French residents. It applies to companies whose income from such transactions exceeds EUR 750 million per year.

The introduction of the tax caused dissatisfaction in the United States where the head offices of many companies whose European branches are now forced to pay more taxes in France. After the August talks between the U.S. and France, Donald trump and Emmanuel Macron, the parties agreed that the French tax will be cancelled after the enter into force of a major international agreement on this issue.

The current recommendation by OECD is aimed to reach such an agreement. The initiative will be presented to the Finance Ministers of the member countries of the G20 at their meeting in Washington next week.

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