Amazon to Be Covered by Global Tax Deal Despite Thin Margins (2)• https://news.bloombergtax.com
Global policy makers are crafting their international tax plan to make sure Amazon.com Inc. is included, even though the U.S. company's profit margin is below the 10% proposed threshold that would give other countries rights to collect revenue.
Group of Seven finance ministers on Saturday voiced supportfor proposed rules reallocating a portion of profits above a 10% margin to be taxed in other countries, but Amazon has estimated a global operating margin of 7.1% this year. Two people familiar with the negotiations said Amazon will be included, with the particulars of how to design the policy to capture the company still being discussed.
An Amazon spokesperson said the company "fully expects to be in the scope of any final agreement at the OECD," referring to the eventual deal expected from the Organization for Economic Cooperation and Development referenced in the G-7 statement.
Amazon shares dropped as much as 1.1% to $3,172.20, briefly hitting a session low on the news, before closing the day little changed.