France approves the Web Tax

France approves the Web Tax

The French Government has decided not to wait any longer for the decisions of the European Union regarding the Web Tax and to approve a law that effectively forces the High Tech Big Companies to pay taxes based on the local tax regime, regardless of the chosen registered office. The administration led by President Macron thus follows the example of Italy, where, however, a definitive text is not yet available.

The initiative concerns companies with turnover exceeding 750 million euros of which at least 25 have been produced by online activities in France. The fee to be paid to the transalpine treasury will be equal to 3% on the net taxable amount, as it is a retroactive measure, it is expected that it will bring in the collection of up to 400 million euros.

The big companies involved, including Google, Facebook, Amazon and Apple, will see their earnings shrink, but the most critical reaction would have come from the US institutions, with theOffice of the United States Trade Representative ready to set up an investigation to verify the legitimacy of the Paris decision.

The risk is that Washington may react by opening a new front in the trade war that sees the US already lined up against China, Canada and other states. In this case the conflict could be unleashed against the entire Union, as a preventive measure, to prevent other member countries from taking an example from what happened in France.

All this could happen while within the EU it is still difficult to find a common position regarding the Web Tax. To determine this state of affairs is in particular the position of nations such as Holland, Luxembourg and Ireland which, thanks to advantageous taxation, host the offices of various multinationals in their own territory.

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