Google, Facebook could pay operating cost, tax or for news if other countries follow Australia’s steps.
Australia has introduced a new law with a potential worldwide implication for tech companies, who will henceforth have to pay publishers for news content.
Through commercial agreements with news media businesses in Australia, digital platform are expected to make immense contributions to the welfare of its news industry.
According to Australian Treasurer Josh Frydenberg’s statement, this “will ensure that news media businesses are fairly remunerated for the content they generate”.
Facebook had shut down news channels in Australia last week, opposing the original law which would have allowed bargaining with media outlets.
Following the amendment of the initial law, Facebook is now ready to restore its news channels in Australia.
The social media giant is, therefore, committing to negotiations with the Australian news media businesses with the possibility of “supporting publishers that it chooses”.
- Taxing Technology Companies – Facebook, Google, Netflix, Amazon generate 30% taxes in Nigeria – FIRS
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Tech companies in Nigeria should pay tax – Logan Wort
The new law by Australia is an important step for the world since the topic has been argued around the world and in several ways not necessarily paying for news.
According to Logan Wort, the executive secretary of the African Tax Administration Forum, ATAF, during FIRS first national tax dialogue, tech giants need to pay taxes in Nigeria.
He said that Nigeria must find a solution to tax digital economies – Facebook, Google, Amazon, Netflix – who are making huge amounts of money from the country and globally.
“A lot of internet-based companies would be subject to an average of 28 – 30% taxes that they must pay as part of the overheads,” he said. However, it is difficult to tax digital economies without them being present in Nigeria.
- Capital importation in Nigeria for Q4 2020 declined by 59.65% – NBS
- The Use Of Cryptocurrency Is Not Unlawful In Nigeria – CBN
Australia appears to have found a way around that and there is a chance other countries will execute similar standards.
The Canadian government has said it plans to pass a bill within months to enable it to charge tech companies. The United States and the European Union also have similar issues pressuring them.