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US tech giant shares barely react to G7 tax deal According to Reuters

© Reuters. FILE PHOTO: FILE PHOTO: Logos of Amazon, Apple, Facebook and Google in a combined photo

By Thyagaraju Adinarayan

LONDON (Reuters) – Shares of giant US tech companies barely reacted on Monday to a landmark global minimum corporate tax deal agreed between the world’s richest nations. world, with analysts suggesting it would have the backing of low-tax countries to have any meaningful impact on companies’ bottom line.

The Group of Seven Advanced Economies (G7) on Saturday agreed to roll back the minimum global corporate tax rate to at least 15%, and the focus now shifts to the G20 countries to reach broader agreement on issues related to corporate governance. new tax.

Analysts say the tax deal will not affect companies unless it is agreed with tax havens like Ireland, whose economy is booming with billions of dollars of investment inflows. from multinationals due to lower taxes.

Shares of Facebook (NASDAQ:), Amazon.com (NASDAQ:), Apple (NASDAQ:), Microsoft (NASDAQ:) and Google’s parent Alphabet (NASDAQ:) all fell 0.4% to 0.7%. Europe’s tech stock index is flat.

Marija Vertimane, senior strategist at The road for government (NYSE: Global Markets).

Dublin, which has resisted European Union efforts to harmonize its tax rules, is unlikely to accept a higher minimum tax rate without a fight.

“I would consider the current proposal a small positive for the market,” Vertimane said, adding that the taxes are lower than what was initially discussed.

The G7 proposals are said to target tech companies that sell services remotely and allocate most of their profits to properly organized intelligence in low-tax jurisdictions.

“The immediate market effects are likely to be minimal,” said Ian Williams (NYSE:), economic and strategic research analyst at Peel Hunt.

“No other G7 country currently charges such low rates, and the details, including the agreement from many smaller countries, require a lot of work.”

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