France is ready to make a binding promise to the US to remove a national tax on digital giants, as soon as a new global taxation deal is created. The news came from French Finance Minister Bruno Le Maire on Tuesday.
He hinted that the international deal would not have any impact on the EU’s plan to separate digital levy, which is expected to be published by July 20. However, the plan has come under heavy fire from Washington.
Poof!
Le Maire told reporters that he is prepared to make a formal, legally binding, commitment in the draft budget law. He said it would show “our American friends” that when the OECD tax comes into effect, the national tax “disappears.”
The pledge comes ahead of a meeting of finance ministers from the G20 in Venice later this week. The coalition of wealthy countries is expected to agree on international rules that will govern the taxation of large companies. Last week, 130 countries reached a first draft technical agreement at the Organization for Economic Cooperation and Development.
Washington wants assurances
The US has conditions. To sign up for the international deal, it expects European countries to withdraw any individual digital tax programs. However, as Washington leans on diplomats to kill the plans for an EU digital levy that is aimed at helping to repay the EU’s 750-billion-euro recovery fund, Le Maire showed his support for the initiative.
Le Maire continued to say that the ‘digital levy’, a name he called ‘not the most appropriate,’ has “nothing to do with the taxation of digital giants” and added that he would reassure US Treasury Secretary Janet Yellen about the plans during a meeting next week Monday.
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