Sunday, May 22nd | 21 Iyyar 5782

June 22, 2021 11:34 am

Israel Intends To Adopt OECD Digital Economy Tax Plan

avatar by i24 News

Yisrael Beitenu party leader Avigdor Lieberman seen during a special session of the Knesset, Israel’s parliament, whereby a confidence vote will be held to approve and swear-in a new coalition government, in Jerusalem June 13, 2021. REUTERS/Ronen Zvulun

i24 News – Israeli Finance Minister Avigdor Liberman announced his first major gesture on Tuesday morning at a meeting of senior officials in the ministry, approving in principle Israel’s adherence to the new digital economy tax plan before the adoption of the project by an OECD committee on June 30.

The plan calls for a change in the current global corporation tax system to allow different countries to collect more taxes from international companies that sell products and services to their citizens.

The objective of the plan is to deal with the digital economy and the phenomenon of companies declaring their profits in territories with low tax rates, regardless of the countries in which they have made their profits.

The plan will affect tech companies like Facebook, Apple, Amazon, and Google.

“The economy is becoming more and more global,” said Liberman, “we must introduce policy measures in cooperation with other countries.”

“The Ministry of Finance will act to ensure that the Israeli economy meets international standards in various areas, including taxation and the environment, such as with a carbon tax,” he said.

“The new political orientations will allow the state to obtain income from Big Tech companies by virtue of their activity in Israel,” he said.

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