June 9, 2021
According to officials close to the G7 tax talks, Reuters reports the G7 countries have drawn up a plan to add Amazon to a list of the 100 most profitable companies facing higher taxes by targeting its more profitable cloud-computing units.
While Amazon will not be included in the new proposed rules because its overall operating margin as a company is less than 10%, its Amazon Web Services, which has a margin of more than 30%, qualifies it for inclusion on the list, according to official data.
The source told Reuters: “We now decided that if a corporation as a whole does not reach the profitability limit, but a large division of it exceeds the G7 thresholds, it must be included. With this, we’re aiming exactly at Amazon.”
For more information, read the original story in Reuters.
