France adopts the tax GAFA, the United States revolt

The Parliament has adopted yesterday, Thursday 11 July, the ” tax GAFA “, a tax of 3 % on the turnover of companies in the digital sector, generating an annual activity of at least 750 million euros at world level and 25 million in France.

Bruno Le Maire. Image of Common Sense (CC BY-ND 2.0).

This new tax was justified by the minister of the Economy as a ” matter of justice tax “ while the giants of digital pay 14 points of income taxes of less than the european SMES. The tax affects thirty companies, including Google, Apple, Facebook, Amazon, Microsoft, Uber, Airbnb and the French Criteo. Retroactive to January 1, 2019, it must bring back 400 million euros this year, and then more in the following years.

The United States are speaking out against this tax that they perceive to be discriminatory vis-à-vis american companies. ” The structure of the new tax as the statements of the officials [French politicians] to suggest that France, with this tax, which is a target of an unfair way certain technology companies in the u.s. “, says Robert Lighthizer, united states trade representative, in a press release.

The u.s. administration has opened an investigation to determine if this tax will hurt his business, in which case, retaliatory measures could be taken. ” France is a sovereign State, it determines its tax provisions, and it will continue to exercise sovereignty over its tax decisions “, replied Bruno Le Maire.