Amazon Web Services could count as separate company under G7 tax deal

• If the new G7 agreement on a global minimum tax is ratified, Amazon (AMZN -0.4%) could be included despite falling consistently below the 10% margin threshold that the G7 set for the rate.
• Financial Times sources say the Amazon Web Services cloud division could be considered a separate business that would fall within the margin rules and force the segment to pay higher taxes in Europe.
• In 2020, AWS had a 30% operating margin versus the 3% margin for the retail business.
• Background: G7 tax deal: There's still a long way to go

Comments

[Kyle54]

Already the politicians are including why's to allow giant companies to "escape" paying their fair taxes. Taxes which will undoubtedly be passed 100% to the consumer. Of course governments know this, but don't care.

[LEE64]

With all of the available accounting tricks and schemes, this G7 scheme will be meaningless even if it passes.

[mali77]

Auld socialist France wants to tax others to pay for their welfare state and lifestyle.

[Hudson Investments]

All taxes are paid anyway so there is no effect of a minimum tax on Amazon or Apple

[DrewMcVay]

Whatever happened to that Eurozone debt crisis that was eternally kicked down the road? That was like 9 years ago and if anything things have gotten worse in Europe. Wonder when that’ll show it’s ugly face again.

[quakerpop]

@DrewMcVay we eclipsed it so much in the united states that it's not even worth mentioning. Biden's proposed budget for this year alone is an entire debt crisis.

[Fooly Finance]

The corporate and individual tax rates should be zero. Commie Democrats punishing success, leeching off of better people.

[quakerpop]

@Fooly Finance that's absurd, and I'm a low tax rate libertarian.

[Fooly Finance]

@quakerpop Why the money is being double taxed right now? You're not a libertarian if you support confiscatory taxation. Hate to break it to you.

[quakerpop]

@Fooly Finance I pragmatist first, libertarian second. If there is no individual taxation, and no corporate taxation, how do you intend to fund education, military, roads, regulatory, public safety, etc. Property taxes and sales taxes? And what rate would they need to be? And if you say, we should abolish all of those too, then you aren't a serious person and don't merit serious debate.

[Vandooman]

Any well run conglomerate uses tax shelters from one business to shelter income from another. The European elite is constantly frustrated by American innovation, of which they have so little. They lack risk taking. Their investors buy bonds. They don't have a huge pool of venture capitalists. Their stock markets can't float issues of new companies with new ideas. Their young entrepreneurs catch the first plane they can to the US.

So why do the left want to emulate Europe, with its chronic high unemployment, slow economic growth, and lack of opportunities? Why the push for everyone to be equal like Cuba, where everyone has nothing? Why aren't there lines of young Americans anxious to emigrate to Europe? Why do ambitious young Europeans flock to the US, when it means leaving paradise?

[quakerpop]

@Vandooman because the left prizes "equality," and "fairness" over innovation, creation, hard work. It's all about what one values

[BAHAMAS1]

Just ANOTHER way for the non creative socialistic europe to fund their "open gate" policy that continues to cost them in BLOOD ,TEARS and $$$$.

One day they will run out of "other people's $$$$" and they will be TOTALLY SCREWED...and WELL DESERVED !!!...imo.

[AlexS]

No doubt Amazon will find a way to minimize its taxes under any scheme. That's what corporations do. The G7 tax agreement is mostly an attempt to pressure Ireland to up its taxes anyway.

[Milton Peter]

Amazon welcomes it!

"Amazon said the agreement “marks a welcome step forward” in efforts to “bring stability to the international tax system.”"

[Illuminati Investments]

Big deal, now they'll just include all the AWS expenses they currently include in the retail business to make the former look better. Taxes will miraculously go to zero, like they are in the rest of their businesses.

[Gary J is Rich on AMZN]

@Illuminati Investments

Let's hope so.

[Illuminati Investments]

@Gary J is Rich on AMZN Sure, we all like paying for corporate welfare...it works for $TSLA too.

[freshcupajoe]

Just how anti-American is Janet Yellen. Handing over American corporations to EU vampires and for what? She really believes she's creating global socialist government pipe dream. EU oligarchs love this American socialist hopium because it fills their bank accounts as money drains out of the US and they give absolutely nothing in return for it

[valuebug]

@freshcupajoe Tech companies love to virtue signal, so now it's their chance to do it with real money.

[stephenmcmahon83]

@freshcupajoe God forbid Bezos wasn't able to afford a 4th yacht.

[Milton Peter]

@valuebug "Amazon, Facebook and Google welcomed the historic agreement" !!!

[Entreri]

This will take forever and unlikely to pass.

They are playing the electorate as politicians do. Keep the sheeple pacified and ignorant.

[cryptointhewallet]

now they need two tax evasion schemes? Tax dodging is expensive but someone's gotta not pay for failed bezos rockets

[Gary J is Rich on AMZN]

Company gerrymandering.

[Buggah]

Yep, the EU needs monies bad

[bet727]

Passage highly unlikely.

[wiredlitigator]

@bet727 , unfortunately, that's not what Bloomberg is implying (I know, consider the source). But it seems like carving up entities to trigger tax liability at the GLOBAL level is crazy. Especially when you don't seen China and Russia entities facing liability. I hope you are right, as I wonder what global body wants to spend my tax dollars and on what projects. Bet they don't go to US infrastructure, health or other areas that we need to focus on first.