Notifications about the new digital tax of 3% of the turnover of large technology corporations in France have already been received at the offices of Google, Facebook and Amazon.

 

 

Historically: in 2019, France introduced taxes on revenue from turnover in the provision of digital services by companies, which obliged those with annual global revenue of more than 750 million euros to pay the state 3% of turnover. This is despite the fact that at least 25 million euros of the revenue should be due to services rendered in France, which was confirmed by a press release from the Ministry of Finance, also indicating that a corresponding e-mail notification of the tax to the relevant respondents has been launched.

This tax, accordingly, automatically affects the largest American technology companies, which can also lead to a fairly natural symmetrical response from the US government – but it remains a mystery why this long-known step of France was discussed so long and sluggishly, as well as – why, instead of continuing some constructive dialogue, representatives of the American side in June 2020 at the Organization for economic cooperation and development simply withdrew from the negotiation process, simply promising retaliatory measures (for example, the introduction of duties on French goods totaling $ 1.3 billion) if France approves the digital tax…

This discussion has been going on, in fact, for many years. And historically, companies are taxed in the country of their legal registration, where their income tax is taken into account according to local legislation.

 

However, European countries believe that they also have the right to charge tax on the income of foreign companies. By the way, the governments of great Britain, Italy and Austria are also planning to introduce a similar tax.

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