France has resumed its previously halted taxes on the revenue of tech giants. The country had previously stopped this tax following a deal with the United States. It is a 3 percent tax.
The tax on tech giants was stopped after a deal with the United States. In the deal, the country promised that it would postpone import tariffs on goods from France. In return, France would tax American tech companies less.
Cosmetics and handbags
On the 6th of January, however, the United States will introduce an import tax on products from France totalling 1.3 billion dollars (over 1 billion euros). This includes cosmetics and handbags. Exports from 10 other countries, including the UK, Italy, India and Spain, are also likely to be subject to similar taxes.
France now starts levying 3 percent tax when a company’s revenue exceeds 25 million euros within France or 750 million euros worldwide, The Wall Street Journal writes. This includes major US tech companies such as Google and Facebook.
Other companies
Like some other European countries, France would like to see American technology companies pay more taxes. However, such taxes are often difficult to levy because the businesses are not physically located within the countries. Nevertheless, several countries have introduced a digital tax. For example, Austria is introducing a 5 percent digital tax. The UK is imposing a 2 percent tax on search engine revenue, and Spain is introducing a 3 percent tax on digital services in January.
Tip: France wants to tax tech giants regardless of international agreement
8 hours ago
