France says will apply 'digital tax' for 2020 despite US retaliation threat

Agence France-Presse

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img src="http://sa.kapamilya.com/absnews/abscbnnews/media/2020/reuters/11/25/france.jpg"/><figcaption>Office buildings are seen at the financial and business district of La Defense, amid the outbreak of the coronavirus disease (COVID-19), in Paris, France, November 10, 2020. <em>Benoit Tessier, Reuters</em></figcaption></figure></div><p>PARIS - France will require online technology giants to pay a new &quot;digital tax&quot; on their 2020 earnings, the finance ministry said Wednesday, despite Washington&#x27;s warning that it could retaliate with new tariffs on French imports.</p><p>&quot;The companies subject to this tax have been notified,&quot; a ministry official said, referring in particular to the US firms Google, Amazon, Facebook and Apple, which the US says are being unfairly targeted by the levy.</p><p>The French move risks escalating a long-running fight over how to make American tech multinationals pay a larger share of their taxes in the countries where they operate.</p><p>Under EU law, American companies can declare their profits from across the bloc in a single member state -- in most cases low-tax jurisdictions such as Ireland or the Netherlands.</p><p>Under pressure to take a harder line, France enacted its digital tax in 2019, which calls for 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.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/07/29/20/house-committee-oks-12-percent-vat-on-digital-transactions">Netflix, Facebook, Google tax? House committee OKs 12 percent VAT on digital transactions</a></li></ul><p>But Paris reached a deal with the administration of President Donald Trump to suspend the tax while seeking a global digital tax deal under the auspices of the Organisation for Economic Co-operation and Development (OECD). </p><p>But Trump has warned that punitive duties of 25 percent on $1.3 billion worth of French products, including the country&#x27;s renowned cosmetics and handbags.</p><p>In October, the OECD acknowledged that it would not reach a deal on a new global standard for taxing digital firms this year as hoped, largely because of US opposition to the proposals.</p><figure class="op-interactive"><iframe height="315" src="https://www.youtube.com/embed/oaqNcu2nFeg?enablejsapi=1" width="560"></iframe></figure><div class="iwantbar">Watch more in <a href="//www.iwantv.com.ph/">iWantv</a> or <a href="//tfc.tv/">TFC.tv</a></div>

<p>France will require online technology giants to pay a new "digital tax" on their 2020 earnings, the finance ministry said Wednesday, despite Washington's warning that it could retaliate with new tariffs on French imports.<br /> </p>

France will require online technology giants to pay a new "digital tax" on their 2020 earnings, the finance ministry said Wednesday, despite Washington's warning that it could retaliate with new tariffs on French imports.

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France says will apply 'digital tax' for 2020 despite US retaliation threat

France says will apply 'digital tax' for 2020 despite US retaliation threat

Agence France-Presse

Published Nov 25, 2020 10:06 PM PHT

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