Ian Langsdon/Pool via REUTERS/File Photo Acquire Licensing RightsPARIS, Oct 11 (Reuters) - The Organisation for Economic Cooperation and Development (OECD) published a multilateral treaty on Wednesday that would replace a hodge-podge of national digital services taxes if ratified by enough countries.
If ratified, the treaty requires that countries that have, or are planning, national digital services taxes drop them.
Washington is particularly sensitive to that issue as many of such taxes were put in place to target big U.S. digital companies such as Google, Amazon and Apple.
To enter into force, the 30 countries home to at least 60% of the affected multinational companies have to ratify the treaty, which means that the U.S. has to be on board.
OECD head of tax Manal Corwin said failure to ratify the text could lead to "grave consequences" and not only because it could trigger a proliferation in the use of digital services taxes and trade retaliation.
Persons:
Antony Blinken, Mathias Cormann, Ian Langsdon, Corwin, Leigh Thomas, Mark Potter
Organizations:
Organization for Economic Cooperation, Development, Rights, Economic Cooperation, Apple, OECD, Thomson
Locations:
OECD's, Paris, France, United States, U.S, Washington