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France to tax tech giants from January 1

(Image credit: Image source: Shutterstock/MaximP)

As of January 1 next year, France will start taxing technology giants after negotiations over an EU-wide tax on tech companies stalled in recent weeks.

According to The Register, which cites the country’s minister Bruno Le Maire, France is expecting to raise €500 million in the first year, by taxing advertising revenue, platforms and the resale of personal data.

It is possible that the country would freeze the bill, in case an EU-wide one gets adopted. France is working with Germany on getting a unanimous decision by March 2019, it was said.

EU-wide negotiations about taxing tech giants have stalled recently, with some countries not willing to infuriate the States, and others thinking it’s unfair and would not have wanted to be on the receiving end of such a bill.

The global effort to change how taxation for digital companies work is being led by the Organisation for Economic Co-operation and Development (OECD).

In an effort to speed things up and get everyone on board, the focus of the tax was narrowed to include only advertising sales and digital marketplaces, excluding the sales of user data. That would still mean large enterprises like Facebook or Amazon would need to pay their new taxes, while smaller companies or market research firms would slip through the cracks.

This November, Le Maire told France Inter radio that they’re close to an agreement and that he believes Germany would back it.

Image source: Shutterstock/MaximP