Home / Knowledge / News / E-commerce / France to impose 'digital tax' in 2020

France to impose 'digital tax' in 2020

30
Nov '20
Pic: Shutterstock
Pic: Shutterstock
France has decided to impose a new digital tax on big online technology companies this year, apparently violating an agreement with Washington. The companies subject to this tax—in particular Google, Amazon, Facebook and Apple—have been reportedly notified about the decision. The decision is expected to see a round of punitive US tariffs on French goods.

The 3 per cent tax on revenue from digital services in the country was introduced last year. But the French government had last year suspended collections while negotiations on a broader overhaul of the global tax system continued at the Organisation for Economic Cooperation and Development (OECD). Those talks are yet to result in a breakthrough.

In June, US treasury secretary Steven Mnuchin called off the talks, which were being pursued by 137 countries with a target of securing an accord by the end of this year. In October, the OECD acknowledged that no deal was likely before 2021, largely because of US opposition to the proposals.

"We suspended the collection of this tax so that the OECD talks could finish," French finance minister Bruno Le Maire said last month. "These talks have failed, so we will collect taxes from these digital giants in December," he said.

A deposit on the estimated taxes owed will be required in December, with the remainder due next year, a global newswire reported.

US President Donald Trump has termed the tax as being unfairly targeting American technology giants, and last year threatened import duties of 25 per cent on $1.3 billion worth of French products.

France and many other European nations are taking action after public pressure to make US multinationals pay a larger share of their revenues in taxes in the countries where they operate.

Under EU law, companies in the United States can declare profits from across the bloc in a single member state. Most pick low-tax jurisdictions like the Netherlands or Ireland.

In 2019, President Emmanuel Macron's government enacted a three-percent levy on the profits from providing online sales for third-party retailers as well as on digital advertising and the sale of private data.

The taxes brought in around 400 million euros ($475 million) that year. Britain, Spain, Italy and other European countries have also announced digital taxes to give them a bigger share of the profits that tech firms make from their citizens.

Fibre2Fashion News Desk (DS)


Must ReadView All

Pic: Shutterstock

Apparel/Garments | On 22nd Jan 2021

Bangladesh apparel exports decline 2.99% in H1 FY21

Readymade garment exports from Bangladesh declined by 2.99 per cent...

Pic: PRNewsfoto/Goat Group

E-commerce | On 22nd Jan 2021

Groupe Artemis makes strategic investment in Goat Group

Goat Group, the global platform for the greatest products from the...

Pic: Citi Trends

Retail | On 21st Jan 2021

Citi Trends to open 100 new stores by fiscal 2023-end

Citi Trends, Inc, a US-based value-priced retailer of fashion...

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

Textile institutes need to change their curriculum

Cindy McNaull, Cordura

Cindy McNaull
Cordura

We have broad range of options in durable fabrics

Saket Garg, Garg Corporation

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Mark Tokuhara,

Mark Tokuhara

Japan-based FitJoy, a shoe brand for women, has been in the footwear...

Amanda Cioletti,

Amanda Cioletti

The entertainment/character segment lead as the largest sector for the...

Nick Isles,

Nick Isles

The Condé Nast College of Fashion & Design or CNC as it is known as,...

Frank Heislitz, Freudenberg

Frank Heislitz
Freudenberg

Freudenberg Performance Materials is a leading global manufacturer of...

Tiasha Renganathan, Twinery Innovations by MAS

Tiasha Renganathan
Twinery Innovations by MAS

Twinery-Innovations by MAS is the innovation arm of Sri Lankan company MAS ...

Mark Paterson, Technical Absorbents Ltd

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Judy Frater, Somaiya Kala Vidya

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Robert Brunner, Devereux

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Sweta Tantia, Tahweave & Garo

Sweta Tantia
Tahweave & Garo

Designer Sweta Tantia owns Garo, a couture indutva or ethnicwear brand,...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


January 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search