France ordered tech giants to pay “digital tax”

France ordered tech giants to pay “digital tax”

The French Ministry of Finance has sent out digital services tax notices to major tech companies.

France previously suspended the collection of taxes on companies like Facebook and Amazon as negotiations were underway at the Organization for Economic Co-operation and Development (OECD) to revise international tax rules.

French Prime Minister Jean Castex and Minister of Economy and Finance Bruno Le Maire

The Treasury Department had previously warned that it intends to collect the tax in December, as planned, if negotiations prove fruitless. That the negotiations had gone nowhere became clear in October, when nearly 140 countries participating in them agreed to continue negotiations until mid-2021. Talks stalled as the Trump administration refused to sign a multilateral agreement, officials said.

Last year, France introduced a 3% levy on digital services revenues generated in France by companies with revenues of over € 25 million and € 750 million worldwide. Paris has pledged to end the tax as soon as an OECD deal is reached.

France ordered tech giants to pay “digital tax”

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