The French government today discussed a bill on the introduction of a digital tax for online giants, such as Google, Apple, and Facebook. Only this year, a new tax in the budget is expected to cost 400 million euros.

The French government presented a proposal for a digital tax.
The French government presented a proposal for a digital tax.

The law was discussed today by the government and will be sent to parliament at the beginning of April. French Finance Minister Bruno Le Maire described the law as the first step in establishing the tax system of the 21st century.

This is an issue for French citizens and business people, as nobody can accept that large online businesses pay 14 percent fewer taxes than small and medium-sized enterprises, the minister added.

France will also tax revenue from the sale of personal data of users
France, which strives for the Gafa European tax (the name derives from the initials of the online giants of Google, Apple, Facebook, and Amazon), will also incur revenues from advertising and sales of personal data from users on sales revenue.

The tax will come into effect retroactively from the first of January. This year, the new tax could raise € 400 million in France and € 650 million by 2022, Le Maire explained.

The introduction of digital tax was also announced by the United Kingdom, Spain, and Austria
By current legislation in the EU, technology giants can themselves choose which one of the Member States will report revenue. As a rule, instead of countries where real revenues are actually generated, they say in low-tax countries, such as Ireland, the Netherlands, and Luxembourg.

On average, these companies pay a nine percent tax, while the remaining companies pay 23 percent. In principle, the EU has a consensus on the need to resolve this situation, but not how. The introduction of digital tax has already been announced by the United Kingdom, Spain, and Austria.


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