Home Business & Finance Several Internet Giants Could Be Forced to Pay More Taxes Due to New Rules

Several Internet Giants Could Be Forced to Pay More Taxes Due to New Rules

Several Internet Giants Could Be Forced to Pay More Taxes Due to New Rules

Several Internet Giants Could Be Forced to Pay More Taxes Due to New Rules

source : Pixabay/StartupStockPhotos

As G20 nations are considering the ‘eyeballs policy’ which is that companies will need to pay extra tax in countries where they are used by the highest number of people, internet giants like Facebook, Google might need to pay extra taxes if the countries agree on the policies.

According to the new policy, millions of people who are using different services offered by these technology companies will be considered a big part of overall business. However, as of now, there isn’t any established policy for such case. As a result, tax authorities will need to make an assessment to decide how new policies can be implemented.

Talking about the new policies, Giorgia Maffini had said that it is too early to say which option would be most convenient for everyone. Bill Dodwell also shared similar views as he said that no change would be introduced before 2020. He said, “I think if people can find a way to measure ‘eyeballs’ then it may be a means of valuing part of the service and attracting some form of tax charge.”

This news comes after G20 had requested Organization for Economic Co-operation and Development to recommend international tax rules earlier this year.

While we will need to wait and see how new recommendations are implemented in the coming years. But, one thing for sure, if there is certain changes similar to the ‘eyeballs policy’, then internet giants will be forced to pay more taxes following implementation of new rules.

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