Computer and smartphone
13 September 2017

Four European countries are backing joint proposal on taxing tech giants

France, Germany, Italy and Spain have come up with a joint proposal aimed at taxing tech giants. This involves taxing these companies on the basis of their turnover in each country.
 
A company that earns revenue in Europe must pay taxes in each country where this turnover is made. This is a question of cost efficiency, fiscal fairness and sovereignty. And it is why four European countries (France, Germany, Spain and Italy) have agreed to pool their efforts in pushing for the so-called GAFA group (acronym referring to the world's four most powerful digital companies: Google, Apple, Facebook and Amazon) to pay fair, coherent taxes in Europe. 

To achieve this, they are calling for the necessary and swift harmonisation of taxation in the digital economy. The proposal fronted by the four countries is due to be examined on 15 September at the forthcoming informal meeting of economic and financial affairs ministers in Tallinn.
 
Minister Le Maire
"On digital taxation, we can accomplish what we are setting out to do in a matter of months, rather than years"
Bruno Le Maire, Minister of Economy and Finance
On 12/09/17

 
Bruno Le Maire would also like this issue to be on the agenda of the European Council's December meeting between Heads of State and Government.