France’s Senate has adopted the 3 percent tax on revenues made in France by digital services providers such as Google, Apple, Facebook or Amazon, Le Monde reported. The US govt says it will investigate the tax and make sure it does not unfairly target US companies. French Finance Minister Bruno Le Maire said earlier that while some US companies would certainly be subject to the tax, the legislation is in general aimed at around 30 companies, also from China, Germany, Spain and the UK, as well as from France itself.
The tax would be imposed on any digital company with revenues of more than EUR 750 million, with EUR 25 million of that generated in France. It is expected to yield EUR 400 million this year and EUR 650 million in 2020. It was announced by Presidend Emmanuel Macron at the end of last year. The president said the money raised will help finance certain social and economic measures for the country.In response to US concerns and potential trade threats, Minister Le Maire noted that “France is a sovereign country, its decisions on tax matters are sovereign and will continue to be sovereign.” The minister said he hoped that between allies, France and the US will be able to resolve its disputes “not by threats, but through other ways.”
Le Monde noted that the new tax is meant to be temporary, pending the outcome of international negotiations. The G20 Finance, which met in June in early June, made some progress on international trade and tax matters: the financiers of the world’s major economies have promised to "redouble efforts" to "put tax justice on the international stage," Le Maire said. The goal is to reach a final agreement by 2020. The US, after stalling negotiations for many years, has rejoined talks, making the prospect of an agreement more likely. Differences still remain however, especially on how to apply tax justice.
