US and France Reach Digital Tax Deal
The United States and France have come to an agreement over the French tax on big tech companies, French President Emmanuel Macron said on Monday. He added that France would eliminate its 3 percent tax once the Organization for Economic Cooperation and Development reaches a multilateral agreement on taxation in the digital era. When that new agreement is in place, the companies that have been affected by France’s tax will be reimbursed.
“We’ve done a lot a work on the bilateral basis, we have a deal to overcome the difficulties between us,” Macron said, speaking alongside U.S. President Donald Trump following the G7 summit in France.
The tax was geared towards firms with annual revenues exceeding 750 million euros ($830 million) from “digital activities,” including 25 million euros ($27 million) made in France. Around 30 major tech companies that provide digital services to French users were impacted by the 3 percent tax including Facebook, Amazon, and Google. The U.S. felt that the tax “unfairly targeted American companies,” prompting President Trump to threaten tariffs on French wine in retaliation.