Digital tax: France needs allies against Google, Facebook and Amazon

© Sergey Nivens – stock.adobe.com

After the announcement of further retaliation measures by the United States in the dispute over the taxation of digital corporations, France continues to insist on an international solution.


An agreement by the industrialized nations organization OECD is “the only way out”, it said on Saturday from circles of the economy and finance ministry of department head Bruno Le Maire. They wanted an international solution and asked the United States to continue the OECD negotiations on the digital tax.

US Trade Representative Robert Lighthizer announced new punitive duties of 25 percent on a number of products from France – including cosmetics and handbags – with a trading volume of around $ 1.3 billion (EUR 1.13 billion) on Friday. At the same time, the application of the duties was suspended for a period of 180 days. In the ongoing dispute over the digital tax, Paris and Washington agreed last year to find an international solution within the framework of the OECD. However, the USA at least provisionally left the negotiations at the end of June.

The United States has repeatedly threatened France with punitive tariffs after Paris introduced a national digital tax in 2019 that mainly affects large U.S. corporations like Google or Facebook. At the end of January, the two countries agreed on a framework agreement: Paris agreed to suspend payments in advance on the national digital tax until the end of the year, for which the USA waived sanctions. Paris once again made it clear that the national tax should be applied if there was no solution by the end of the year.

The digital taxes planned in several European countries are aimed primarily at large American technology groups such as Amazon or Google, which, according to critics, do not pay enough taxes in individual markets with their business model. France single-handedly introduced the tax for internet companies because no international agreement was in sight.

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  • Odds_4: © Sergey Nivens – stock.adobe.com


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