France Introduces Digital Services Tax

France is preparing to introduce a new tax for companies providing digital services. This was stated by the Minister of Finance of the state Bruno Le Maire. Previously, this step was discussed at the OECD level, but negotiations on the final implementation will probably not be possible to complete in 2020 due to the coronavirus pandemic. Therefore, Le Maire said that France will introduce the tax independently, regardless of the final decision of the OECD.

Bruno Le Maire noted that the tax on digital services has never been as necessary as it is now. According to him, during the pandemic, digital companies made the most progress and significantly increased their sales. Therefore, the tax can significantly replenish the French budget, which suffered from quarantine measures.

Also, the head of the French Ministry of Finance noted that if the OECD can still come to an agreement and approve the tax on digital services, France will abolish the national tax and will work on the principle of international taxation. If this does not happen, the country will retain the internal tax.

Law&Trust offers services for companies providing digital services in France. Our lawyers will tell you at what rate digital services will be taxed, how to pay it, and how to prepare tax reports.