France will tax the tech giants in December

“We had suspended the collection of the tax until the OECD negotiations were successful. This negotiation failed, so we will collect a tax on the digital giants next December”. The Minister of the Economy, Bruno Le Maire confirmed, Sunday, October 18, that France will tax the tech giants, from the month of December.

Guest of the program Dimanche en politique, he stressed that “France must be proud to be one of the first countries in Europe, with Spain, with Italy, with Austria to levy fair taxation on digital people, of whom I recalls that they are the only winners of this crisis “.

The failure of an agreement with the OECD

Last Monday, the 137 countries negotiating under the aegis of the OECD failed to find an agreement for the big digital companies to “pay their fair share of taxes”.

However, the organization says it is confident to find common ground by mid-2021. Its secretary general, Angel Gurria predicted, in the event of definitive failure, “an increase in unilateral actions, retaliatory measures”, and in fine, a new “trade war”.

The pandemic “widened the deficits”

These new tax rules, in addition to pacifying international economic relations, could bring in 200 billion dollars a year, welcome when the pandemic has “widened the public deficits”, had argued Angel Gurria at a press conference.

Opposite, the digital giants have “taken advantage” of the digitization of the economy, accelerated by the various containment measures in the world.

As an example, Facebook achieved a turnover of nearly 70 billion dollars in 2019, but paid 8.46 million euros in corporate tax in France in 2019. A tiny fraction of the 6 , 3 billion in taxes paid by the group, mainly in the United States.

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