France says global talks on taxing tech giants being blocked by US, India

International talks aimed at taxing global tech giants that declare profits in only a few jurisdictions have hit a standstill due to opposition from countries including the US and India, France's finance minister said on Monday. This week's G20 meeting will attempt to get the ball rolling again.

Countries have been locking horns with the US over how to tax tech giants who currently pay little in most countries despite generating considerable revenues. AFP/File

The talks, under the auspices of the OECD, about taxing multinationals in the countries where they make their profits are intended to reduce tax avoidance, and come ahead of a meeting of the G20 group of large economies in India this week.

"As of today things are blocked, in particular by the United States, Saudi Arabia and India" and "chances of success are slim," Bruno Le Maire told a press conference.

He said France had always argued that if G20 countries were unable to get agreement on the issue, a "European solution" should be sought instead.

"I think we're at that point now," he said.

The Organisation for Economic Cooperation and Development, a club of mostly rich countries based in Paris, has spearheaded talks on the tax which primarily targets digital giants, most of them with mother companies in the United States.

A separate agreement calling for a global minimum 15 percent tax rate on multinational businesses, also coordinated by the OECD, has had more success, and is to be implemented in the "coming months", Le Maire said.

France already taxes large digital businesses on a national level, bringing an estimlated 700 millions euros into the national coffers every year.

International agreement is blocked on the idea of a standard minimum 15 percent tax on company profits.