CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. France Advances On Internet Tax Plans

France Advances On Internet Tax Plans

by Ulrika Lomas, Tax-News.com, Brussels

26 December 2012


Tasked by the government with examining the issue of digital taxation, French state councillor Pierre Collin and finance inspector Nicolas Colin have recently submitted their initial proposals to French Budget Minister Jérôme Cahuzac and French Junior Minister responsible for the digital economy Fleur Pellerin.

To ensure a fairer tax contribution in France from US Internet giants such as Google, the rapporteurs have put forward two proposals.

The first and more ambitious measure involves plans to renegotiate existing bilateral tax treaties, while taking into account when calculating corporate tax the digital activities of Internet giants, including online sales of music, books, films, and advertising space, by quantifying personal data used, notably for advertising purposes.

The second initiative involves taxing according to the number of users, namely by imposing a tax of a few euros per user.

French Finance Minister Pierre Moscovici, French Minister responsible for Industrial Renewal Arnaud Montebourg, and French Junior Ministers Cahuzac and Pellerin announced plans back in July 2012 to launch an investigation into the current taxation of the country’s digital economy.

Aware that the French tax system has failed to keep pace with the rapid development of digital technologies and e-commerce, the ministers set up a working group to study how tax revenues from this sector of the economy can be increased while maintaining the competitiveness of France's digital industries.

The expert group were tasked with drawing up an inventory of the various taxes and levies that currently impinge on the sector, and carrying out an international comparison.

The group's final proposals were due to be submitted in December, but are now expected at the end of January.

TAGS: Finance | tax | mining | commerce | budget | Organisation for Economic Co-operation and Development (OECD) | agreements | e-commerce | France

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »