France resumes tax on tech giants, seeks deal with US | Your Money

PARIS (AP) — France is resuming assortment of a particular tax on Big Tech corporations like Amazon and Facebook regardless of the specter of U.S. retaliatory tariffs on French Champagne, cheese, purses and different items.

The tax led to 400 million euros to the French funds final yr, however the authorities agreed to droop it in 2020, in alternate for an American promise to drop the tariff menace pending talks on a global deal on taxing online corporations.

France hoped that such an accord might be reached by the tip of this yr, rendering the French tax moot. But the Trump administration pulled out of the negotiations, led by the Organization for Economic Cooperation and Development, and no such deal is prepared but.

So French Finance Minister Bruno Le Maire stated Thursday that France will once more levy the tax. Speaking on a go to to Italy, he stated: “We naturally hope that the Italian presidency of the G20 will present the impetus to achieve an settlement throughout the OECD, which might be supported by all European nations, regarding a good tax on tech giants.”

A Finance Ministry official stated the French Treasury despatched the 2020 tax payments to Amazon, Google and different corporations affected by the measure final week, they usually need to pay by the tip of the yr. The ministry expects the tax income to whole a bit greater than final yr as a result of large tech corporations have had a superb yr amid the pandemic.

France’s commerce minister informed The Associated Press earlier this month that he hopes President-elect Joe Biden’s administration rejoins discussions on the OECD for a world deal.

Other European nations have imposed related measures, that are aimed toward forcing online giants to pay full taxes within the nations the place they do enterprise as a substitute of in tax havens. U.S. officers have argued that the taxes unfairly goal profitable American corporations, although France says its tax is aimed toward all large tech corporations that make money online.

Copyright 2020 The Associated Press. All rights reserved. This materials might not be printed, broadcast, rewritten or redistributed with out permission.

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