Mon. Nov 18th, 2019

United States will launch counter-measures against the France digital service tax

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Earlier, France passed a new bill requiring technology companies with more than €750 million in global revenues or more than €25 million in revenue in France will be hit by the tax. According to the new law, these technology companies are required to impose an additional tax of 3% of the total annual income in France, the so-called digital service tax. Undoubtedly affected by the new bill is mainly the US technology giants, including Google’s parent company, Facebook, Amazon and Microsoft, and other well-known companies.

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After the news was released, US President Trump immediately ordered an investigation into the French digital service tax. Trump believes that France does not treat US companies fairly. The US Information Technology and Innovation Foundation, a US science and technology policy think tank, said the new French bill is clearly significant and deliberately contrary to international efforts.

The American Chamber of Commerce also issued a statement saying that the above policies will hurt US companies and workers, and may cause additional major losses for US companies. The US Trade Representative Office also issued a statement saying that the new French policy not only affects US companies but also China, Germany, Spain, and the United Kingdom.

In the United States, although Trump condemned these actions in the EU, Trump actually wanted to launch an anti-monopoly investigation to fine the tech giant.

Via: WSJ