French tax on net giants should yield 500 million euros per year
A 3 percentage tax on the French revenue of big internet corporations may want to yield 500 million euros (568.5 million pounds) in line with the year, French Finance Minister Bruno Le Maire said on Sunday.
Le Maire advised Le Parisien newspaper the tax is aimed toward organizations with international virtual sales of a minimum of 750 million and French sales of greater than 25 million euros. He said the tax would target some 30 companies, ordinarily American, and Chinese, German, Spanish, and British, and one French firm and several firms with French origins that have been sold by using foreign businesses. The paper indexed Google, Amazon, Facebook, and Apple (the four so-referred to as “GAFA” corporations); however, Uber, Airbnb, Booking, and French online marketing professional Criteo as goals.
A taxation gadget for the 21st century has to construct on what has cost nowadays, and that is information,” Le Maire stated. He introduced it as a count of economic justice, as the digital giants pay a few 14 percent fewer taxes than European small-and-medium-sized companies. Fairer taxes are a key demand for the “yellow vest” protests across France in the past three months.
Le Maire stated the tax would target platform agencies that earn a fee on setting corporations in contact with clients. Companies promoting their products on their websites would no longer be targeted, consisting of French retailer Darty which sells TVs and washing machines thru its internet site. But groups such as Amazon making a living as a virtual middleman among a producer and a purchaser might need to pay.
The tax might also goal the income of personal records for advertising purposes.
To avoid penalizing organizations who already pay taxes in France, the quantity paid could be deductible from pretax profits, Le Maire stated. He will present a draft regulation to the cabinet on Wednesday earlier than its miles provided to parliament. France has pushed companies with widespread digital sales in the European Union to pay greater tax on supply. However, it has made little headway as Germany is cool to the idea, even as member states with low company tax prices and Luxembourg and Ireland firmly oppose the thought.
In an interview with weekly Journal du Dimanche, Carrefour CEO Alexandre Bompard said it’s miles excessive time to cease the financial imbalance among brick-and-mortar firms like his and the U.S. And Chinese net platform companies. They pour their merchandise onto markets without even paying cost-delivered tax and hardly any other tax at all; it’s miles insupportable. On the same turnover, they have to pay the same tax,” he stated.