Tax of the 21st Century: French government to collect tax from tech companies
Updated 18:11, 11-Jun-2019
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French government plans to add a tax on the technology sector, which will influence not only the big tech giants but also e-commerce companies like Alibaba and eBay, CGTN's Stefan de Vries report in Paris.
STEFAN DE VRIES PARIS "The French call it the tax of the 21st Century, the so-called GAFA tax. That's short for Google, Amazon, Facebook and Apple, all American tech giants. There will be a 3 percent tax on companies with a worldwide turnover of more than 750 million euros and a turnover here in France of more than 25 million euros. The tax will not only apply to the tech giants, but also to e-commerce sites like Alibaba, eBay and Microsoft."
For the moment, France is the only country in Europe with a project for digital tax, but the goal is to make it European. Some member states of the European Union, however, fear that the United States will retaliate and impose a similar levy on European companies.
We contacted all the companies that will be affected by this new tax here in France. So far, we only got a statement by Alibaba, saying that they are monitoring the situation around the digital tax and that they will define their position once the final tax has been adopted. This is Stefan de Vries, in Paris for CGTN.