GAFA logos and shadow of hand
22 January 2019

GAFA tax: a bill is expected to be presented to the Council of Ministers in February

Bruno Le Maire has clarified the scope of the future tax on the tech giants, which is "a major issue for the 21st century and a question of justice and effectiveness". France is pushing on in its efforts to reach a European agreement on the subject.
 
The Government is working on a national tax on the so-called GAFA group (referring to the world's four most powerful tech companies: Google, Apple, Facebook and Amazon), coming into force this year.
 
  • This tax will apply to all digital service providers with a turnover in this line of business of more than €750m worldwide and €25m in France (companies not meeting both of these criteria will not be levied).
  • It will be retroactive to 1 January 2019.
  • Its rate will be adjusted according to turnover, up to a maximum of 5%.
  • It is expected to generate around €500m in revenue.
  • A bill is due to come before the Council of Ministers by the end of February and swiftly be put to a parliamentary vote.
"Taxing the US tech giants is a major issue for the 21st century and a question of justice and effectiveness […] How can we finance our preschools, our schools and more broadly our public services if we do not tax value where it is located?"
Bruno Le Maire,
France's Sunday newspaper, Le Journal du Dimanche, 20 January 2019

Over and above this planned national tax, France is backing a European proposal put forward by Pierre Moscovici. "Some countries are still hesitant. We proposed a compromise in December with Germany and I firmly believe that an agreement is now within reach by the end of March".


Google, Apple, Facebook, Amazon and other digital giants will be taxed as from 2019

Bruno Le Maire has announced that GAFA will be subject to taxation in France as from 1 January 2019. There is still the priority o... [Read more]
18 December 2018