Technology

France requires Facebook and Amazon to pay digital taxes


11/26/2020 16:03 GMT + 7

The French finance minister sent notices to major tech firms, asking for planned digital tax payments in December.

France postponed digital tax collection on companies like Facebook and Amazon earlier this year, amid ongoing negotiations on reform of international tax regulations at the Organization for Economic Cooperation and Development (OECD). . Long, the country’s Ministry of Finance said, will conduct tax collection in December as planned, if discussions do not come out. Last month, nearly 140 countries involved agreed to continue negotiations until mid-2021.

A ministry official confirms companies that are e-taxable have received tax notices for 2020. In 2019, France levies a 3% tax on revenue from digital services earned in France. of companies with sales of more than 25 million euros in this market and 750 million euros globally.

Facebook’s stance is “ensuring compliance with all tax regulations in the jurisdictions in which the company operates”. Amazon and Facebook have both received notifications.

France will withdraw regulations as soon as the OECD reaches an agreement on cross-border taxation in the e-commerce era, where major Internet companies can reap profits in low-tax countries regardless of their customers. where.

Negotiations have stalled as the Trump administration does not want to sign a multilateral deal. Finance Minister Bruno Le Maire confirmed that there will still be digital taxation as explained to the US government. France hopes the OECD agreement can be reached in the early months of 2021.

Dan Neidle, partner of law firm Clifford Chance, suspects President-elect Joe Biden will disagree with such a deal, as it causes American businesses to pay more taxes and not much benefits for the US.

Du Lam (Reuters)

Cambodia consider taxing digital services with Facebook, Google, Amazon

Cambodia consider taxing digital services with Facebook, Google, Amazon

Cambodia is considering taxing digital services like Netflix, Amazon, Alibaba, Facebook and Google because these businesses provide and generate income in Cambodia, but are not registered in the country.

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