Skip to content
Subscriber Only

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
Video player cover image
WATCH: Amazon.com Inc. is becoming a focal point in the Group of Seven's tax plan. Anna Edgerton reports.(Source: Bloomberg)
Updated on

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.