France to go ahead with digital tax regardless of possible international deal

John E. Kaye
- Published
- News

France will go ahead with its tax on big digital businesses this year whether there is progress or not towards an international deal on the issue, Bruno Le Maire, finance minister said on Thursday.
In January, France offered to suspend until the end of the year instalments of its tax on big digital companies’ income in France while an international deal to re-write the rules of cross-border taxation was negotiated this year.
“Never has a digital tax been more legitimate and more necessary,” Finance Minister Bruno Le Maire told journalists on a conference call, adding such companies were doing better than most during the coronavirus crisis.
Almost 140 countries are negotiating the first major rewriting of international tax rules in more than a generation, to take better account of the rise of big tech companies that often book profit in low-tax countries.
However, the fallout from the coronavirus outbreak has left finance ministries more focused on saving their economies than overhauling outdated tax rules, making a deadline of the end of the year to wrap up the talks look increasingly compromised.
“In any case, France will apply as it has always indicated a tax on digital giants in 2020 either in an international form if there is a deal or in a national form if there is no deal,” Le Maire said.
France’s national tax has been a source of contention with Washington, which considers that it unfairly targets U.S. digital companies.
Reported by Leigh Thomas
Sourced Reuters
For more Daily news follow The European Magazine
Sign up to The European Newsletter
RECENT ARTICLES
-
Off the blocks: LEGO and Formula 1 reunite for documentary on viral Miami Grand Prix stunt
-
Mergers and partnerships drive Africa’s mining boom – but experts warn on long-term resilience
-
New AI breakthrough promises to end ‘drift’ that costs the world trillions
-
Europe tightens grip on strategic space data as dependence on U.S tech comes under scrutiny
-
Trinity Business School study warns conspiracy theories are fueling real-world protest and sabotage
-
GITEX GLOBAL 2025 to spotlight AI’s expanding role in future-critical sectors
-
UK organisations show rising net zero ambition despite financial pressures, new survey finds
-
HumanX to establish permanent European base with 2026 Amsterdam AI summit
-
Gulf ESG efforts fail to link profit with sustainability, study shows
-
Glastonbury and Coachella set the stage for $400bn music tourism growth
-
Geopolitical volatility enters global top ten business risks for first time, new survey finds
-
Redress and UN network call for fashion industry to meet sustainability goals
-
Dar Global unveils $1bn Trump Plaza Jeddah in second Saudi venture with Trump Organization
-
Investors eye UAE as Belt and Road real estate gateway for Asia
-
Mitsubishi Estate’s £800m South Bank scheme to deliver 4,000 jobs
-
Watch: driverless electric lorry makes history with world’s first border crossing
-
Bologna sets pace in Europe’s tech race with record investor–founder meetings
-
Family-owned firms resist board diversity gains despite gender quotas, study finds
-
UK start-up founders defy stereotypes with corporate roots and regional spread
-
London Law Expo 2025 to tackle leadership, AI and integrity in the legal sector
-
Sustainability skills surge in European boardrooms, EY finds
-
UK and U.S unveil landmark tech pact with £250bn investment surge
-
International Cyber Expo to return to London with global focus on digital security
-
Cybersecurity talent crunch drives double-digit pay rises as UK firms count cost of breaches
-
Trinity Business School strengthens standing in global MBA rankings