France passes law taxing tech giants despite USA anger

France hits back at US over tax on big digital companies

The measure was approved by France's Senate on Thursday.

It will target companies such as Google and Facebook with a 3% levy on revenue made inside France.

The law, which goes into effect retroactively as January 1, 2019, targets about 30 companies around the world. Other EU nations have announced their own plans for digital taxes, including Britain, Spain and Italy.

The tax would come into force in April 2020, and is expected to raise nearly £1.5bn in four years.

Introduced in France retroactively from January 1, 2019, this tax on gross digital sales would help the country collect 400 million euros this year and 650 million euros by 2022.

France has led a push for internet companies with significant digital revenue in the European Union to pay more tax at source, but has made little headway as Germany is cool on the idea, while member states with low corporate tax rates such as Luxembourg and Ireland firmly oppose the proposal. Countries including Australia, Austria, Italy and even the United Kingdom also have similar proposals in the works.

But the French move drew an angry response from the White House even before the legislation was passed, with Trump ordering an investigation unprecedented in the history of French-US relations.

Love Island’s Amy 'set to find love on Celebs Go Dating
Taking to twitter, fans starting theorising saying: "Lucie and George must have been dumped if Amy has walked". Though it isn't known whether she was part of one of the evicted couples, it's all to play for on the show .

"We support the USA government's efforts to investigate these complex trade issues but urge it to pursue the 301 investigation in a spirit of global cooperation and without using tariffs as a remedy", ITI's Jennifer McCloskey said in a statement. The lawmakers urged the U.S.to look at "all available tools under US law to address such targeted and discriminatory taxation".

"France is sovereign country, its decisions on tax matters are sovereign and will continue to be sovereign", he added.

"My message to our American partners is that (the tax) should encourage them to accelerate even more the work on an global digital tax solution at the OECD level", Le Maire said Thursday. "It seems to me better policy to deal with this fundamental issue of the taxation of digital giants".

Trade groups that represent tech giants, such as the Computer and Communications Industry Association and the Internet Association, also have attacked the French legislation as discriminatory.

Amazon also hailed Trump Administration's "decisive action against France and signaling to all of America's trading partners that the US government will not acquiesce to tax and trade policies that discriminate against American businesses".

While addressing the senate, France's finance minister said data is taxed 14 points lower than other economic activity and all they are doing is "restoring economic fairness".

Related News:



Most liked

Couple sues fertility clinic, says their embryo implanted in wrong woman
The New York woman, who has not been named, gave birth to twins who were not related to her or to each other, the complaint says. Anni Manukyan herself was unsuccessfully impregnated twice and understands now that at least one of those embryos was not hers.

What Ending the Affordable Care Act Could Mean for Texans
That's because provisions of the ACA extend far beyond its core mission of subsidizing health insurance for low-income Americans. Now the matter is before the 5th Circuit, based in New Orleans. "The health and wellbeing of almost every American is at risk".

Ole Gunnar Solskjaer gives injury update on Man United's Alexis Sanchez
There also remains the issue of replacing the clinical forward and Solskjaer's options in the market are pretty limited. I can't be sitting here talking about Paul and what agents are saying.

Pelosi responds to AOC drama: 'I've said what I'm going to say'
She stressed that some Democrats, including moderates who unseated Republicans in 2018, are fighting to keep their seats in 2020. In February, Pelosi announced the Democratic members for her select panel on the climate crisis without Ocasio-Cortez included.

Trump v. Big Tech: Social media summit will snub tech titans
The plan, which has drawn congressional skepticism, was scaled down due to questions about need and potential costs. Pew surveyed a sample of 1,284 veterans and 1,087 other adults in May and June and compared their answers.

Dow Suddenly Recovers After Fed Chair Powell Tees Up a Rate Cut
The greenback is under pressure in the early day, likely from some profit taking ahead of Fed Chair Powell's Testimony later today.

Angela Merkel shaking: I'm well, she says, despite third incident
She has a reputation for stamina garnered during years of late-night domestic and European negotiating marathons. Speaking to reporters about it, she said "there has been progress" and "there was no need to worry".

Nintendo reveal a new Switch Lite console with a Pokémon special edition
Nintendo has clarified that the back-of-box information for physical games, or Nintendo's website , will say if this is the case. In terms of controls, the Switch Lite ditches the detachable Joy-cons in favor of a solid built-in controller setup.

Nintendo Switch Lite announced, launches September 20 for $199
The Switch Lite weighs around 290 grams, which is about 90gl grams lighter than the Switch with Joy-Con controllers attached. It also does away with HD rumble and IR sensors from the controllers that bring incompatibility issues with several games .

Kawhi Leonard wanted to play with Kyrie Irving
Just one week ago, NBA free agent and 2019 NBA Finals MVP Leonard was facing one of the biggest decisions of his life. Check out the audio below as Clay explains why he regrets counting the Clippers out in the Kawhi Leonard sweepstakes.

Turn back to 1985 with Microsoft’s Windows 1.11-Stranger Things mashup
It's only available as a PC program, which is kind of disappointing because I would have expected it to run in mobile platforms. Microsoft says it is already working on a resolution which should be available in the end-July update to Windows 10.

Serena Williams Fined $10,000 for Repeatedly Smashing Her Racket on Wimbledon Court
Ramos penalized Williams for three separate on-court violations for illegal coaching, breaking her racket and verbal abuse. She continued, "I would love the chance to live that moment over again". "Okay.

Stop picking on me, says Konta after Wimbledon exit
Halep won the French Open past year and was world No.1 as recently as January before being eclipsed by Naomi Osaka and then Barty. It did not come quite as quickly as hoped, as two match points came and went in a flurry of deuces and a break back by Kvitova.

Prime, Inc. sues Amazon over trademark infringement
Airtel , Vodafone , BSNL , and Idea offer complimentary subscription to Amazon Prime with select plans. Use code PANTRY at checkout and free shipping on Prime Pantry orders over $25 for a limited time .

Record Audiences Get Set to Make the 2017 Grand National the Biggest To Date
For some , it will be a case of asking which horses have been at their most impressive this season that will give them the clues as to which Grand National horses to bet on .