France imposes digital tax on tech giants despite US threats
There will be 3% tax levied on sales generated in France by multinational firms like Google and Facebook.
The French government’s stance is that these tech giants have headquarters outside the country and they pay little or no tax.
In response to the imposed taxes, the US administration has ordered an inquiry into the move, which could result in retaliatory tariffs.
The new tax was approved by the French senate on Thursday, a week after it was passed by the lower house, the National Assembly.
Any digital company with revenue of more than €750m, of which at least €25m is generated in France, would have to pay taxes.
The taxes will be applied from early 2019, as per sources.
The European Commission estimates that on average traditional businesses face a 23% tax rate on their profits within the EU; whereas, internet companies typically pay 8% or 9%.