Friday, 12 July 2019 11:19

France passes digital tax law despite US threats

France passes digital tax law despite US threats Pixabay

Despite US threats of an inquiry into its actions, France has passed a law to impose a 3% digital services tax on multinational technology companies like Google and Facebook.

The tax was approved by the French Senate on Thursday, a week after it was passed by the lower house, the BBC reported.

The law will cover companies that have global revenue of more than €750 million and French revenue of more than €25 million.

It will be applied from the beginning of this year and is expected to raise about €400 million.

On Wednesday, US trade representative Robert Lighthizer said an inquiry would "determine whether it is discriminatory or unreasonable and burdens or restricts United States commerce".

France made its intentions clear last year, with Finance Minister Bruno Le Maire telling the media in December that €500 million (US$570 million) would be raised through this measure in 2019.

Reacting to Lighthizer's comments, Le Maire said France was "sovereign and decided its own tax rules".

"I want to tell our American friends that this should be an incentive for them to accelerate even more our work to find an agreement on the international taxation of digital services," he said.

Other countries have taken similar steps with the UK having put in place a digital services tax which will take effect from April 2020.

The French law, which targets companies that use the data of consumers to sell online advertising, is expected to hit Airbnb and Uber as well as companies from China and other parts of Europe.


As part of our Lead Machine Methodology we will help you get more leads, more customers and more business. Let us help you develop your digital marketing campaign

Digital Marketing is ideal in these tough times and it can replace face to face marketing with person to person marketing via the phone conference calls and webinars

Significant opportunity pipelines can be developed and continually topped up with the help of Digital Marketing so that deals can be made and deals can be closed

- Newsletter adverts in dynamic GIF slideshow formats

- News site adverts from small to large sizes also as dynamic GIF slideshow formats

- Guest Editorial - get your message out there and put your CEO in the spotlight

- Promotional News and Content - displayed on the homepage and all pages

- Leverage our proven event promotion methodology - The Lead Machine gets you leads

Contact Andrew our digital campaign designer on 0412 390 000 or via email



Security requirements such as confidentiality, integrity and authentication have become mandatory in most industries.

Data encryption methods previously used only by military and intelligence services have become common practice in all data transfer networks across all platforms, in all industries where information is sensitive and vital (financial and government institutions, critical infrastructure, data centres, and service providers).

Get the full details on Layer-1 encryption solutions straight from PacketLight’s optical networks experts.

This white paper titled, “When 1% of the Light Equals 100% of the Information” is a must read for anyone within the fiber optics, cybersecurity or related industry sectors.

To access click Download here.


Sam Varghese

website statistics

Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.



Recent Comments