“A U.S.-driven effort to reach a global accord on taxing big tech companies’ overseas profits is getting bogged down over ensnaring one firm in particular: Amazon.com Inc.
“A Treasury Department proposal, which was distributed to other governments earlier this month and has been seen by Bloomberg, would subject about 100 of the largest and most profitable companies to greater taxation in countries where the firms’ users and consumers are located, as opposed to the countries where they’re headquartered.
“The idea is that the new rules would apply to any large companies that exceed certain numbers, yet to be determined, for their annual revenue and profit margin … The global talks, led by the Organization for Economic Cooperation and Development, are trying to address many countries’ concerns that tech giants — and other multinationals — aren’t being properly taxed under the current system of rules.”
But … there’s a “but.”
“Amazon’s unusual status as a low-margin tech giant is emerging as a sticking point in negotiations,” Bloomberg writes. “Seattle-based Amazon recently reported a global operating margin across its businesses of 5.5%; that compares with Facebook’s margin of 45.5% and 27.5% at Google parent Alphabet Inc.”
You can read the entire analysis here.