Technology

France pushes forward alone with new tax on big tech companies

France is to press ahead alone with a brand new tax on big technology companies after can not secure seek a EU-wide levy.

The French finance minister, Bruno Le Maire, said he believed the tax, that will work from 1 January, would raise 500m (450m) in their fresh.

France may be pushing for just a EU GAFA tax C named after Google, Apple, Facebook, Amazon C but faced opposition from countries including Ireland, which hosts the European headquarters a number of technology companies, including Google and Apple.

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The Organisation for Economic Co-operation and Development (OECD), a grouping of major world economies, has been working on proposals a great international scheme that would regulate taxation on technology companies.

France has also been utilizing Germany on plans for the 3% tax on EU advertising sales that is going to come from 2021.

The plans can be a solution to the customarily complex corporate structures arrange by a few companies that derive huge revenues from major European economies but allow them slash their tax bills by shifting profits to low-tax jurisdictions.

Progress upon the OECD plus the Franco-German proposals have been slow, prompting France to safely move ahead unilaterally.

“The tax are going to be introduced whichever on 1 January and will also be for that of 2019 to have an amount that people estimate at 500m,” Le Maire told a press conference in Paris.

Several countries, like UK, have said they’re also minded to impose new taxes on technology companies, mindful of public frustration in their often meagre contribution to economies where they earn money.

The chancellor, Philip Hammond, promised to introduce an electronic florida sales tax within the budget in October to ensure “global giants with profitable businesses in britain pay their fair share”.

He said the british isles could no more await “painfully slow” discussions at international level and would instead introduce a 2% tax on certain kinds of sales, that she claimed would raise 400m 1 year.

Spain and Italy also are focusing on national versions of any digital tax, similar to Singapore and India.

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