Facebook boss Mark Zuckerberg will tomorrow accept the company may have to pay more tax, throwing his support behind a planned global reform to the way online giants are taxed. In published extracts of a speech to be made on Saturday, Mr Zuckerberg said: "We also want tax reform and I"m glad the OECD is looking at this. "We want the OECD process to succeed so that we have a stable and reliable system going forward." The digital tax has emerged as a major bone of contention between the US and the UK, which last month vowed to press ahead with its own digital tax despite the potential impact on its hopes of forging a trade deal with the United States as it exits the EU. The tax is slated to be introduced in April. It has also sparked tensions with Paris, which imposed its own tax on US digital giants such as Facebook, Google, Amazon and Apple last year. Washington slammed the move as discriminatory, but both sides agreed last month to pursue a global framework through the Organisation for Economic Co-operation and Development (OECD), with Paris suspending its collection of the tax until December 2020. Global discussions have been complicated by an alternative proposal by Washington for a so-called "safe harbour" option which analysts say would essentially render compliance optional and jeopardise the chances of reaching a comprehensive deal by the end of this year. The next deadline facing the OECD negotiators is early July, when the 137 participating nations are to meet to agree on the main policy elements of the digital tax. Mr Zuckerberg will tell a security conference in Munich on tomorrow that Facebook accepts that any new OECD system for online tax "may mean we have to pay more tax and pay it in different places under a new framework". He will say he understands frustrations over how tech giants are taxed in Europe. The OECD said in a statement on Thursday that the tax changes under discussion would bring in 4pc more global corporate income tax worth $100bn (£77bn) annually. The revenue gains would be "broadly similar across high, middle and low-income economies, the OECD added in a statement. "The aim is to ensure that multinational enterprises conducting sustained and significant business in places where they may not have a physical presence can be taxed in such jurisdictions." This would put an end to the practice seen in Europe currently where multinational online companies operating in several countries base their headquarters in a low-taxing regime such as Luxembourg or Ireland to minimise their fiscal outlay.
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