Samsung’s eCommerce tax on ecommerce stocks has failed to raise much interest from regulators, says the US company
Samsung is not taking any chances, saying its eCommerce taxes are on the up and up and the tax won’t stop it from selling the stuff it’s buying.
In a statement, Samsung said it is considering a new eCommerce taxation policy and that it has already met with regulators to “explore” the topic.
It said it has also met with the European Union (EU) to discuss tax arrangements, and that its tax plan will be reviewed by the EU’s executive committee.
Samsung’s tax on its ecommerce sales is capped at 5 percent of sales.
That’s an attractive, even generous deal for ecommerce companies, but it has come under fire from consumer advocates, consumer groups and tax experts who argue that Samsung’s scheme isn’t fair.
The company said it was also working on a new approach.
The eCommerce Tax Policy is a way for the companies that own and operate eCommerce businesses in the United States to have a tax-free, lower tax rate than those that sell their goods directly to consumers, said Dan Schoen, senior policy analyst at the Tax Policy Center, a Washington think tank that supports the proposal.
The proposal also requires companies to pay an “effective tax rate” of at least 5 percent for eCommerce sales, a reduction from the current 3 percent rate.
That lower rate will help Samsung meet its $2.2 billion sales tax liability, according to the company.
“The current tax system is not working for consumers and it will not work for businesses that are not selling directly to customers,” said Dan Steinberg, the chief executive of the Center for American Progress, a progressive advocacy group.
Schoen added that Samsung will probably need to increase the effective tax rate for its e-commerce business.
The tax plan is not yet ready for public comment, so it’s unclear if it will ever be approved.