The Amazon logo is seen in the company Logistics center in France, February 20, 2017 in Lauwin-Planque, Northern France. ReUTERS Pascal Rossignol File Photo
The G 7 states have found a way to include Amazon, one of the world's largest companies, on a list of 100 countries that are expected to face more taxation in the countries where they do business, said officials close to the talks.
Some European countries raised concerns that Amazon may fall out of the scope of the proposed new rules because its overall operating margin as a company is less than 10%, which is the threshold set for companies on the list as a criteria.
But because Amazon Web Services business has a margin of more than 30%, Amazon as a whole can be included, the officials, who spoke on condition of anonymity, told Reuters.
International discussions on a global corporate minimum tax agreed by the Group of Seven riches countries on June 5 in parallel to the talks on how to divide the privileges to tax excess profits, those which can be considered routine, of the world's 100 biggest, most profitable companies.
The Finance Ministers of the G7 agreed that governments should get the right to tax at least 20% of income from multinational companies when this margin was over a 10% margin.
Now we have decided that if a corporation as a whole does not reach the profitability limit, but one division of it exceeded G 7 thresholds, it must be included, said a source close to the discussions.
With this, we aim at Amazon, the source added.
Amazon did not respond immediately to requests to comment on Amazon website.
Without that country of Amazon, a British government source familiar with the negotiations said that consideration was being given to how the rules would apply to companies with different activities and business lines.
OECD Head of Tax Pascal Saint-Amans said Amazon's AWS unit would be liable because it had revenues exceeding a 20 billion euro threshold.
The profits linked to the cloud will thus be shared among countries, he told France Info TV