Amazon to Be Covered by Global Tax Deal Despite Thin Margins
- Negotiators try to craft tax policy so Amazon meets thresholds
- New rules could target Amazon’s cloud computing business
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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 support for 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.