The Digital Services Tax (DST) has been dubbed the “GAFA tax” (an acronym of the main US targets: Google, Apple, Facebook and Amazon). However, contrary to what this acronym suggests, the French GAFA tax not only targets US groups but other international groups including French, Chinese, German, Spanish and English groups. Indeed, the French tax administration has estimated that around 30 international groups are impacted by this tax.
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France - Digital Services Tax
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France will tax big digital businesses this year whether there is progress or not towards an international deal on a levy, its finance minister said on Thursday, adding such a tax had never been more legitimate or more necessary.
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Facts and analysis of France's digital services tax proposal that will take effect in 2019. Learn more about France digital services tax facts and analysis.
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Despite ongoing multilateral negotiations in the OECD, about half of all European OECD countries have either announced, proposed, or implemented a digital services tax.
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France is to resume collection of its digital services tax this month, Bruno Le Maire, France's finance minister has confirmed.
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The French Finance Ministry has sent out notices to big tech companies liable for its digital service tax to pay the levy as planned in December.
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On 23 and 30 March 2020, the French Tax Authorities (FTA) issued new draft guidance with respect to the Digital Services Tax (DST). This draft guidance focuses on compliance issues and also includes the first guidance on the scope and computation of the DST.
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France recently approved a 3% tax on revenues generated by large digital companies in its territory, a move that is now being investigated as a potentially unfair trade practice by the U.S. government. France’s legislation is a concrete step of a European Union proposal, which has been years in the making, to tax American tech giants such as Alphabet, eBay, and Facebook. Emboldened by the EU stance, Asian and Latin American countries have begun discussions on how to tax tech giants on revenues earned in their territories. If implemented, these proposals have the potential to shift billions of dollars from tech companies to local economies. The authors argue that one-size-fits-all taxation of large digital firms based on gross revenues is too blunt an instrument to address the putative budgetary deficits of local governments. They call for a more substantial debate on the issue and more imaginative ideas to ensure fair and effective taxation.
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But Bruno Le Maire stands by EU proposal under fire from Washington.
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News, analysis and comment from the Financial Times, the worldʼs leading global business publication
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Some experts fear France's unilateral approach with the digital tax will backfire.
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France will require big tech companies to pay its digital services tax, a move that is likely to trigger retaliation by President Donald Trump and pitch the incoming US administration into another trade fight.
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France last year applied a 3% levy on revenue from digital services earned in France by companies with revenues of more than 25 million euros here and 750 million euros worldwide.
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The United States is launching an investigation into France's new digital tax, which targets some of the biggest American technology companies. Our Business Editor Stephen Carroll looks at what the tax…
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France will require online technology giants to pay a new "digital tax" on their 2020 earnings, the finance ministry said Wednesday, breaking a truce with Washington over the long-running tax fight that…
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