France Begins to Demand Digital Tax from American High-tech Corporations
OREANDA-NEWS. The French authorities have begun sending out notifications to American corporations about the need to pay a new digital tax, Financial Times reports. Facebook and Amazon have already received tax notices for 2020.
French law provides for a tax of 3 % on the revenue that technology companies receive in France. We are talking only about those companies annual turnover of which is at least 750 million euros, while at least 25 million euros were received in France. Thus, it will affect about 30 international corporations, for example, Google, Amazon, Facebook, Apple, Uber, Airbnb, Booking.
The bill was passed by the French authorities last year and provides for the collection of taxes from January 1, 2020. However, Paris has postponed the implementation of the digital tax law for a long time, hoping for a successful conclusion of negotiations with both the United States and partners in the Organization for Economic Cooperation and Development. The US Treasury withdrew from the negotiations in June. A month later, the United States announced a 25 % duty on French goods in retaliation for the digital tax.