Shares in US Tech Giants a Notch Lower After Landmark G7 Tax Deal

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FILE PHOTO: FILE PHOTO: The logos of Amazon, Apple, Facebook and Google in a combination photo

LONDON ⸺ Shares in U.S. technology giants were down slightly in premarket trading after the world’s richest nations agreed on a landmark global minimum corporate tax deal. 

The Group of Seven (G7) advanced economies agreed on Saturday to back a minimum global corporate tax rate of at least 15%.

Shares of Facebook, Amazon.com, Apple, Microsoft and Google-parent Alphabet were all down between 0.1% and 0.5%. Europe’s tech stocks index was down 0.2% in early trades.

“…the immediate market implications are likely to be minimal,” said Ian Williams, economics & strategy research analyst at Peel Hunt.

“No G7 nation currently charges that low a rate and the details, including agreement from numerous smaller countries, require plenty of work.”

The focus now shifts to the G20 countries for a wider agreement on the new tax proposals.

The G7’s proposals are seen targeting technology companies that sell services remotely and attribute much of their profits to intellectual properly held in low-tax jurisdictions. 

Reporting by Thyagaraju Adinarayan and Sagarika JaisinghaniEditing by Rachel Armstrong, William Maclean; Reuters

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