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

Fashion | On 20th Jan 2021

UK shoppers face delays, extra fees on EU fashion items

UK shoppers are reportedly facing delays and extra fees of up to £5...

Pic: Shutterstock

Textiles | On 20th Jan 2021

German economy shrinks by 5% in 2020: govt

Germany's economy shrank by 5 per cent last year, following ten years ...

Pic: KPMG

Retail | On 20th Jan 2021

UK high streets may lose 400,000 jobs post COVID-19: KPMG

Main shopping streets in UK may further lose more than 400,000 jobs...

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

The new deal is better than NAFTA for the US textile industry

Karel Williams, Dow Microbial Control

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Stefan Warnaar, Peak to Plateau

Stefan Warnaar
Peak to Plateau

People are willing to pay for quality and performance

Ismail Ajani,

Ismail Ajani

Hollywood Footwear’s story began in 1946 when Jummabhai Ajani started the...

Lukas Hartmann,

Lukas Hartmann

Intex Consulting GmbH is a completely integrated enterprise resource...

Jos Notermans,

Jos Notermans

SPGPrints is a global provider of integrated solutions for rotary screen...

Karl Zelik, Vanderbilt University

Karl Zelik
Vanderbilt University

A team of engineers at the Vanderbilt University has designed a smart...

Giulio Cesareo, Directa Plus

Giulio Cesareo
Directa Plus

UK-based Directa Plus is one of the largest producers and suppliers...

Mr Ambrose Chan, DSG International (Thailand) PLC

Mr Ambrose Chan
DSG International (Thailand) PLC

Sweta Tantia, Tahweave & Garo

Sweta Tantia
Tahweave & Garo

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

Rajesh Pratap Singh, Rajesh Pratap Singh

Rajesh Pratap Singh
Rajesh Pratap Singh

<div>Ace fashion designer <b>Rajesh Pratap Singh</b> has used Tencel to...

Varsha Wadhwa, VW

Varsha Wadhwa
VW

Coming from a family that ran a business of jute and linen mills since...

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