In business, no company would like to pay more amount of taxes for earning huge amount of revenues. But from recent few months regulations in Europe especially France has been tightened for giant tech companies. According to a recent report which shows that the government of France is trying to implement a new Digital tax on giant companies to protect other companies which are getting dominated by big corporations. Finance Minister Bruno Le Maire said that this new levy taxes would bring more than 500 million Europe of tax revenues to the country. From last few months rules regarding data privacy and tax have become very strict in the European continent after lots of controversial data scandals.
This new tax will start on January 1 and will apply to any company which has a global revenue of more than 700 million euros and in France which generates more than 25 million euros. Now reports show that US and China might talk regarding with France regarding this new digital tax since many companies will get affected because of it. Now after this move of France other countries like U.K. and Germany are also trying to implement a digital tax on giant internet companies. Experts think France will be able to a huge amount of tax revenue from companies like Facebook, Google, Amazon who generates a massive amount of sales through online advertisement and data selling.
France has already fined Google and Facebook for selling private data of country’s users also that’s the reason why the government of France has decided to bring this new tax norm. Le Maire Said that bringing of new tax would not violate any terms of tax agreement which France signed with the USA. Le Maire further mentioned that the Organisation for Economic Cooperation and Development would create a new political accord on digital and data taxation. It will be interesting to see how USA will react to this decision of France.―Market Media