On June 17, the United States announced that it was withdrawing from the negotiations with European countries to tax large digital companies, including Amazon. The Trump administration’s decision is based on the fact that taxing U.S. companies would be “very damaging to the country.” The European countries have not yet formally issued a response, but are expected to do so in the coming days.
It is worth remembering that in January 2020, 137 countries agreed that by the end of this year there would be an agreement to tax digital companies. The initiative is being developed within the framework of the Organization for Economic Cooperation and Development (OECD). However, the future of the agreement now faces serious difficulties given the absence of the United States.