French tax on internet giants could yield 500 million euros per year: Le Maire

PARIS (Reuters) – A three percent tax on the French revenue of large internet companies could yield 500 million euros (568.5 million pounds) per year, French Finance Minister Bruno Le Maire said on Sunday.

FILE PHOTO – The Google name is displayed outside the company’s office in London, Britain November 1, 2018. REUTERS/Toby Melville/File Photo

Le Maire told Le Parisien newspaper the tax is aimed at companies with worldwide digital revenue of at least 750 million and French revenue of more than 25 million euros.

He said the tax would target some 30 companies, mostly American, but also Chinese, German, Spanish and British, as well as one French firm and several firms with French origins that have been bought by foreign companies.

The paper listed Google, Amazon, Facebook and Apple (the four so-called “GAFA” companies) but also Uber, Airbnb, Booking and French online advertising specialist Criteo as targets.

“A taxation system for the 21st century has to built on what has value today, and that is data,” Le Maire said.

He added it is also a matter of fiscal justice, as the digital giants pay some 14 percentage points less tax than European small-and-medium sized companies.

Fairer taxes are a key demand of the “yellow vest” protests seen across France in the past three months.

Le Maire said the tax would target platform companies that earn a commission on putting companies in touch with customers.

Companies selling their products on their own websites would not be targeted, such as French retailer Darty which sells TVs and washing machines via its website.

But companies such as Amazon earning money as a digital intermediary between a producer and a client would have to pay.

The tax would also target the sales of personal data for advertising purposes.

In order to avoid penalizing companies who already pay taxes in France, the amount paid will be deductible from pretax income, Le Maire said.

He will present a draft law to the cabinet on Wednesday before it is presented to parliament.

France has led a push for firms with significant digital revenue in the European Union to pay more tax at source, but has made little headway as Germany is cool to the idea, while member states with low corporate tax rates such as Luxembourg and Ireland firmly oppose the proposal.

In an interview with weekly Journal du Dimanche, Carrefour CEO Alexandre Bompard said it is high time to end the fiscal imbalance between brick-and-mortar firms like his and the U.S. and Chinese internet platform companies.

“They pour their products onto markets without even paying value-added tax, and hardly any other tax at all, it is intolerable. On the same turnover they should pay the same tax,” he said.

Reporting by Geert De Clercq and Elizabeth Pineau; editing by Jason Neely

Source link

more recommended stories

  • Uber could announce $3 billion deal with Careem early this week: sources

    A cell phone with the Uber.

  • Abu Dhabi aims to lure start-ups with investment in new technology hub

    ABU DHABI (Reuters) – Abu Dhabi.

  • China refuses to concede on U.S. demands to ease curbs on tech firms: FT

    FILE PHOTO: Chinese staffers adjust U.S..

  • Indian state open for talks with Uber rival Ola over ban

    BENGALURU (Reuters) – The southern Indian.

  • Apple’s Cook to China: keep opening for sake of global economy

    FILE PHOTO: Apple CEO Tim Cook.

  • Exclusive: Mexico central bank says Uber, other firms interested in mobile pay system

    ACAPULCO, Mexico (Reuters) – Various companies.

  • Autonomy founder Lynch set for $5 billion Hewlett-Packard court showdown

    LONDON (Reuters) – Mike Lynch, once.

  • Apple’s iPhone struggles unravel ambitions of Japan Display

    TOKYO (Reuters) – When Japan Display.

  • GM to announce $300 million investment in Orion EV/AV plant

    (Reuters) – General Motors Co will.

  • Ionity plans 400 electric car charging stations in Europe by end-2020

    FILE PHOTO: A charging station for.

  • South Korean watchdog cuts fine on Qualcomm after decade-old legal battle

    A Qualcomm sign is seen during.

  • Google fined $1.7 billion for search ad blocks in third EU sanction

    BRUSSELS (Reuters) – Alphabet unit Google.

  • Samsung Elec sees green shoots in China smartphone business: co-CEO

    SEOUL (Reuters) – Samsung Electronics Co.

  • Google announces browser-based streaming game service

    SAN FRANCISCO (Reuters) – Alphabet Inc’s.

  • South Korea radar and thermal camera system warns ‘smartphone zombies’ of traffic

    ILSAN, South Korea (Reuters) – A.

  • UK’s Corbyn says social media platforms must act after New Zealand attack

    Candles are flowers placed at a.

  • Facebook says it removed 1.5 million videos of the New Zealand mosque attack

    People take pictures on a pedestrian.

  • Amazon’s second headquarters clears blocks in Virginia funding vote

    WASHINGTON (Reuters) – Amazon.com Inc’s planned.

  • Amazon’s second headquarters faces new blocks in Virginia funding vote

    WASHINGTON (Reuters) – Amazon.com Inc’s plan.

  • Apple Watch detects irregular heart beat in large U.S. study

    (Reuters) – The Apple Watch was.

  • Apple infringed three Qualcomm patents, jury finds

    (Reuters) – Mobile phone chip supplier.

  • Apple says Spotify wants benefits of a free app without being free

    (Reuters) – Apple Inc on Thursday.

  • Olympics: Tokyo 2020 unveils robots to help wheelchair users, workers

    Tokyo 2020 Olympics and Paralympics organizers.

  • Facebook product chief Cox to exit as focus shifts to messaging

    Facebook Inc’s chief product officer and.

  • Facebook struggles into day two of global outage

    (Reuters) – Facebook Inc struggled to.

  • SoftBank, Toyota in talks to invest $1 billion in Uber’s self-driving unit: sources

    NEW YORK (Reuters) – A group.

  • Spotify files EU antitrust complaint against Apple

    BRUSSELS (Reuters) – Spotify has filed.

  • ZTE Corp controlling shareholder plans 3 percent stake sale after stock rebound

    FILE PHOTO: People walk past a.

  • Electric vehicle demand likely to drop if tax credit ends: U.S. official

    FILE PHOTO: A charging port is.

  • Vizio wants next-generation smart TVs to target ads to households

    (Reuters) – Smart TV manufacturer Vizio.

  • Berners-Lee says World Wide Web, at 30, must emerge from ‘adolescence’

    GENEVA (Reuters) – The fraying World.

  • Software firm Ebix offers to buy India’s ticketing firm Yatra Online

    (Reuters) – Software firm Ebix Inc.