France has decided to introduce a new tax that will cover global internet giants. President Donald Trump announced an investigation into the consequences it will have for US companies in this industry.
The introduction of a new digital tax from the beginning of the year was dealt with by French parliamentarians and the Ministry of Finance and Economy. On Thursday, the Senate finally adopted the new law. The tax of three percent applies to giants whose profits exceed 750 million Euros in the world and 25 million in France . This applies to twenty-six companies that meet these conditions, including Google, Amazon, Facebook, Apple, Microsoft and Twitter.
Digital tax in France with a retroactive date
The law is retroactive – from January 1, 2019. This year, it will bring the state treasury 400 million Euros. A similar solution could not be implemented on a pan-European scale. Spain adopted them instead. Responding to threats from Donald Trump , who announced that he would consider retaliation, French Finance and Economy Minister Bruno Le Maire pointed out that, firstly, allied countries should not resort to threatening problems. Secondly, France is an independent state and can independently decide on its fiscal policy.
Morawiecki announced a digital tax
The Polish government is also considering introducing a similar tax. In March, during a press conference, Prime Minister Mateusz Morawiecki, pointing to the sources of funding for the so-called “Kaczyński’s fives”, said, among others on “fair taxation of the profits of digital giants”.
At that time, the government estimates the financial effect associated with “taxing digital giants” at PLN 1 billion a year. “Profits that global companies generate in Poland by offering digital services such as online advertising, VOD and music streaming should be fairly taxed,” the Prime Minister’s Office argued. What does this mean exactly? Will. Google, Facebook, Amazon, Netflix, Spotify or Uber pay tax in Poland? How? When? In what amount This is unfortunately not specified.