Selin ATAY-TDO- France's insistence on taxing U.S. internet giants on the country's revenue plays a major role in straining relations between France and the United States.
The tension that began between France and the US is deepening with the introduction of income taxes on US digital giants such as Google, Amazon, Facebook, Apple, Instagram.
French President Emmanuel Macron and US President Donald Trump at a press conference in the UK capital London yesterday, the issue of the tax France levies on digital giants such as Google, Amazon and Facebook on their income in the country was raised again. While Macron said he thinks he can resolve this issue with the United States, Trump stressed that he has different views on this issue than France.
Although talks between the two leaders at the G7 summit in France indicated that the issue would be resolved, there has been no positive development during this time and tensions have deepened. Macron said at this summit that a solution to the tax implementation could be found within the organization for Economic Co-operation and Development (OECD), headquartered in Paris.
It had reported that the United States had deemed France's tax on U.S. technology firms unfair and planned to impose a customs duty of up to 100 percent on some other products worth $ 2.4 billion imported from France, in retaliation for the practice. France, in turn, had reminded the US that planning a customs duty was unacceptable, and that the European Union (EU) would respond if it were to happen.
In light of these revelations, the dispute between the United States and France is becoming increasingly difficult to resolve. While the US maintains that these sanctions are correct, France is adamant that it will not give up the tax in question.
France's National Assembly approved a draft law on July 11th that would tax digital giants such as Google, Apple, Facebook and Amazon on the country's revenue. Under the Law, digital giants will be taxed 3 percent on the revenue they earn in France. The taxes, which will apply to about 30 companies including Google, Amazon, Facebook, Apple, Instagram, are expected to bring France 400m Euros in revenue this year and 650m Euros next year.