What you need to know
- New OECD proposals could mean companies like Apple face larger tax bills.
- More than 130 countries have agreed tax reform is necessary due to the rise of internet companies.
- Proposals could would mean companies pay tax regardless of whether they have a physical presence in a country.
According to Reuters, new proposals from the OECD could affect the way large multinational companies like Apple pay taxes, leading to heavier tax bills. The news comes following general agreement that tax laws have not kept pace with the rise of internet companies like Apple, Facebook and Google, and that a major overhaul is needed.
According to Reuters:
Under the new proposals governments would have more power to tax companies based on where their users or clients live, rather than simply where the company is based.The move would affect companies with a revenue of over $821 million.
According to Reuters these proposals run parallel to further OECD proposals aiming to establish an internationally agreed minimum corporate tax rate that comapnies "cannot avoid".
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Stephen Warwick has written about Apple for five years at iMore and previously elsewhere. He covers all of iMore's latest breaking news regarding all of Apple's products and services, both hardware and software. Stephen has interviewed industry experts in a range of fields including finance, litigation, security, and more. He also specializes in curating and reviewing audio hardware and has experience beyond journalism in sound engineering, production, and design.
Before becoming a writer Stephen studied Ancient History at University and also worked at Apple for more than two years. Stephen is also a host on the iMore show, a weekly podcast recorded live that discusses the latest in breaking Apple news, as well as featuring fun trivia about all things Apple. Follow him on Twitter @stephenwarwick9