France Is Renewing A Special Tax On Large Technology Companies

France Is Renewing A Special Tax On Large Technology Companies

France is renewing a special tax on large technology companies such as Amazon and Facebook, despite the threat of retaliatory tariffs by the US on French sparkling wine, cheese, handbags and other goods. Last year, the digital tax brought about € 400 million to the French budget, but the government agreed to suspend it in 2020 in exchange for a US promise to suspend tariffs during negotiations on an international agreement on the taxation of Internet companies.

They hope to support other countries as well

France hoped that a digital tax agreement could be reached by the end of the year, but the administration of US President Donald Trump withdrew from the negotiations. Negotiations are conducted by the Organization for Economic Co-operation and Development (OECD). No agreement has been reached yet. French Finance Minister Bruno Le Maire has therefore said that France will apply the tax again. During his visit to Italy, he said: "Naturally, we hope that the Italian Presidency of the G20 will provide an impetus for reaching an agreement within the OECD on fair taxation of technology giants, which could be supported by all European countries."

Discussions could resume Biden

A representative of the French Ministry of Finance stated that the ministry sent tax payment assessments to Amazon, Google and other companies last week, and they are obliged to pay the tax by the end of the year. In an interview with the Associated Press this month, the French Minister of Commerce expressed the hope that the Joe Biden administration would rejoin the discussions within the OECD on a global agreement on the digital tax. U.S. officials say such taxes are unfairly affecting successful U.S. companies, but France says its tax is targeted at all major technology companies that make money online.