Wait...
  1. Home >
  2. Export Import News >
  3. Business News >
  4. France passes law taxing digital giants in defiance of US anger >
  5. France passes law taxing digital giants in defiance of US anger

Online Export Import Data Search

Complete Training Video : Click Here

France passes law taxing digital giants in defiance of US anger.


Date: 12-07-2019
Subject: France passes law taxing digital giants in defiance of US anger
PARIS: France on Thursday became the first major economy to impose a tax on digital gaints,, with parliament passing the legislation in defiance of a probe ordered by President Donald Trump that could trigger reprisal tariffs.

The new law aims at plugging a taxation gap that has seen some internet heavyweights paying next to nothing in countries where they make huge profits.

The legislation -- dubbed the GAFA Tax  -- an acronym for Google, Apple,Facebook But the French move drew an angry response from Trump even before the legislation was passed, with the president ordering an investigation that the French economy minister said was unprecedented in the history of French-US relations.

The law will levy a 3 per cent tax on total annual revenues of the largest tech firms providing services to French consumers.

"The United States is very concerned that the digital services tax which is expected to pass the French Senate tomorrow unfairly targets American companies," US trade representative Robert Lighthizer said in a statement.

But French economy minister Bruno Le Maire France rejected the US reaction on Thursday, saying "threats" were not the way to resolve such disputes.

"Between allies, I believe we can and must resolve our differences in another way than through threats," he told the French Senate ahead of the vote.

"France is a sovereign state and it alone decides on its taxation mechanisms and it will continue to do so," he said.

Le Maire said he was warned about the so-called section 301 investigation during a "long conversation" with US treasury secretary Steven Mnuchin on Wednesday, saying it was the first time such a step had been taken in the history of French-US relations.

This type of investigation is the primary tool the Trump administration has used in the trade war with China to justify tariffs against what the United States says are unfair trade practices.

The measure was initially adopted by the lower house on July 4.

Last month, top G20 finance chiefs meeting in Japan agreed there was an urgent need to find a global system to tax internet giants like Google and Facebook but clashed over how to do it.

But they welcomed a set of proposed measures laid out by the Organization for Economic Co-operation and Development (OECD), a forum for advanced economies.

"We will redouble our efforts for a consensus-based solution with a final report by 2020," they said in a statement.

Washington has been pushing through the G20 for an overarching agreement on taxation.
Such a move is supported by Google which believes it would mean Silicon Valley tech giants would pay less tax in the US and more in other jurisdictions, in a departure from the longstanding practice of paying most taxes in a company's home country.

The section 301 investigation, which is being run by the US trade representative's office, has said it will hold hearings to allow for public comment on the French tax issue for several weeks before issuing a final report.

The move was applauded by the Computer & Communications Industry Association which said the French law would retroactively require US internet giants to turn over a percentage of their revenues from the start of 2019.

"This is a critical step toward preventing protectionist taxes on global trade," CCIA official Matt Schruers said in a statement, calling on France "to lead the effort toward more ambitious global tax reform, instead of the discriminatory national tax measures that harm global trade."

Source: timesofindia.indiatimes.com 


Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Both
 Buyers
 Suppliers
 Both
OR
 Exim Help
+


What is New?

Date: 16-07-2019
Notification No:10
Amendment in appointing a new Statistics Office under Collection of Statistics Act 2008

Date: 16-07-2019
Circular No 19/2019-Customs
Implementation of PGA eSanchit- Paperless Porcessing under SWIFT- Uploading of Licenses/ Permits/ Ceritificates/ Other Authorizations (LPCOs) by PGAS - reg.

Date: 15-07-2019
Notification No. 51/2019-CUSTOMS (N.T.)
Tariff Notification in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Silver- Reg

Date: 12-07-2019
ECA Circular No. 26/2015-20
Action for recovery of Penalty, Pending Appeals/Reviews

Date: 12-07-2019
Notification No. 50/2019- Customs (N.T.)
Amendment to the Notification No. 63/1994-Customs (N.T) dated 21st November, 1994, by notifying the pipeline of M/s Indian Oil Corporation Limited connecting Barauni, Patna, Motihari, Nonea in India to Amlekhgunj in Nepal as additional route for Raxaul LCS

Date: 12-07-2019
No. 27/2019-Customs (ADD)
Seeks to extend levy of anti-dumping duty till 27.10.2019, on imports of " Paracetamol" originating in or exported from china PR, extended vide notification No. 39/2018 Customs (ADD), dated the 20th August, 2018, in pursuance of order of Hon'ble High Court of Gujarat in the matter of SCA 5278/2019.

Date: 11-07-2019
A.P. (DIR Series) Circular No.2
Exim Bank's Government of India supported Line of Credit of USD 24.50 million to the Government of the Republic of Senegal

Date: 11-07-2019
A.P. (DIR Series) Circular No.1
Exim Bank's Government of India supported Line of Credit of USD 100 million to the Government of Independent State of Papua New Guinea

Date: 09-07-2019
Trade Notice No. 25/2019-20
Import of 4 lakh MT of feed grade Maize (dent corn) under TRQ allowed

Date: 09-07-2019
Notification No. 49/2019-CUSTOMS (N.T.)
Tariff Notification in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Sliver - Reg



Exim Guru Copyright © 1999-2019 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.

EximGuru.com

C/o Infodrive India
E-2, 3rd Floor, Kalkaji Main Road
New Delhi - 110019, India
Phone : 011 - 40703001