Thursday 2 July 2020 ,
Thursday 2 July 2020 ,
Latest News
  • Transcom Group Chairman Latifur Rahman passes away
  • 41 more deaths from coronavirus, 3,775 new cases
  • Transcom Group Chairman Latifur Rahman passes away
  • Parliament passes budget for 2020-21 FY
  • Govt asks DCs to take proper steps to address flood
  • Momen seeks US investment in Bangladesh’s health sector
  • Buriganga death toll climbs to 33
  • Coronavirus Hotline Numbers: 01944333222, 16263, 333; website: www.corona.gov.bd
7 March, 2019 00:00 00 AM
Print

France unveils new tax for global internet giants like Google, Facebook

AFP, Paris
France unveils new tax for global internet giants like Google, Facebook

France is set to unveil legislation yesterday to increase taxes on global internet giants such as Google and Facebook, putting it among a vanguard of countries seeking to force the companies to pay more in the markets where they operate.

President Emmanuel Macron came to power in 2017 promising to increase levies on global tech and internet groups, seeing their often minimal tax rates as part of a backlash in France and Europe against globalisation.

Having failed to persuade his European partners to introduce an EU-wide tax -- because of objections from low-tax jurisdictions such as Ireland and fears of provoking US President Donald Trump -- France is to go it alone with its own new mechanism.

Under a proposal set to be discussed by cabinet ministers and submitted to parliament, large companies operating in France would face a tax of three percent on their digital sales in the country.

"The amount obtained from this three percent tax on digital gross sales in France from January 1, 2019 should soon reach 500 million euros ($566 million)," Economy Minister Bruno Le Maire told the French daily Le Parisien at the weekend.

The new levy is known as the "GAFA tax" in France -- an acronym for US giants Google, Apple, Facebook and Amazon -- who have until now routed their sales in France through subsidiaries in low-tax EU members.

In one of the most best known cases, the European Commission concluded that Apple had paid an effective corporate tax rate of just 0.005 percent on its European profits in 2014 -- equivalent to just 50 euros for every million.

In 2016, it was ordered by the European Commission to pay 13 billion euros in back taxes to Ireland which were judged to amount to illegal state aid.

Under EU law, internet giants can choose to report their income in any member state, prompting them to choose low-tax nations such as Ireland, the Netherlands or Luxembourg.

Under the draft legislation set to be presented by Le Maire on Wednesday, only digital companies with global annual sales of more than 750 million euros and sales in France of at least 25 million euros would be taxed.

"If these two criteria are not met, the taxes will not be imposed," Le Maire said.

About 30 companies from the US, China, Germany, Spain and Britain as well as France would be affected, he said.

For Le Maire, taxing the companies "is a question of fiscal justice" as "digital giants pay 14 percent less tax than small- and medium-sized European companies".

Ireland, Denmark and Sweden have blocked EU efforts to devise a new tax for fear of detering investment, and Germany has proved

lukewarm on the issue, fearing US retaliation against its car industry.

 

Comments


Copyright © All right reserved.

Editor : M. Shamsur Rahman

Published by the Editor on behalf of Independent Publications Limited at Media Printers, 446/H, Tejgaon I/A, Dhaka-1215.
Editorial, News & Commercial Offices : Beximco Media Complex, 149-150 Tejgaon I/A, Dhaka-1208, Bangladesh. GPO Box No. 934, Dhaka-1000.

Editor : M. Shamsur Rahman
Published by the Editor on behalf of Independent Publications Limited at Media Printers, 446/H, Tejgaon I/A, Dhaka-1215.
Editorial, News & Commercial Offices : Beximco Media Complex, 149-150 Tejgaon I/A, Dhaka-1208, Bangladesh. GPO Box No. 934, Dhaka-1000.

Disclaimer & Privacy Policy
....................................................
About Us
....................................................
Contact Us
....................................................
Advertisement
....................................................
Subscription

Powered by : Frog Hosting