U.S. Tech Industry Leaders: French Digital Service Tax Harms Global Tax Reform

www.oann.com | 1/18/2019 | Staff
AavyAavy (Posted by) Level 4
WASHINGTON (Reuters) – Major tech firms and U.S. tech industry groups said on Monday that France’s new digital services tax undermines the global tax regime and multilateral efforts to reform it.

Alphabet Inc’s Google, Facebook Inc and Amazon.com Inc and major trade associations testified Monday against the tax at a hearing before the U.S. Trade Representative’s office and other government officials.

Senate - July - % - Levy - Revenue

The French Senate in July approved a 3% levy that will apply to revenue from digital services earned in France by companies with more than 25 million euros in French revenue and 750 million euros ($838 million) worldwide.

“It does depart from even the outlines of what we expect out of the OECD,” said Daniel Bunn, director of global projects at the Tax Foundation, commenting on OECD-wide efforts to create a global agreement on taxing the digital economy.

US - Chamber - Commerce - Tax - Revenue

The U.S. Chamber of Commerce said the tax will generate revenue of approximately 500 million euros ($554 million) per year “a large majority of which will be paid by U.S. firms” and will cost U.S. firms millions to conduct “significant re-engineering of accounting systems to ensure that they can accurately assess” liability.

Major tech firms warned of increased costs.

Measures - DST

“Unilateral measures like the DST...
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