March06,2019

During a news conference in Paris on March 6, France’s Finance Minister Bruno Le Maire introduced a digital tax of 3 percent to be imposed on over 30 internet companies. The proposed levy targets on big tech firms that generate more than 750 million euros (US$ 848 million) in worldwide revenue with over 25 million euros (US$28 million) in French receipts.

Tech giants like Amazon, Facebook, and Google will be affected. Le Maire estimated the new tax will raise about 500 million euros (US$ 566 million) a year. This digital tax plan is an effort from the French government to clamp down on corporate tax avoidance. 

The Organization for Economic Cooperation and Development (OECD) is currently examining a global digital tax and expected to come to an international agreement until 2020. Le Maire said France would withdraw its own digital tax plan once the OECD reaches an agreement.