France creates GAFA tax on Google, Amazon, Facebook and Apple — 2022
As reported in recent hours by the news agency AFP News , France is expected to impose from January 1, 2019 the GAFA tax with which they hope to raise up to 500 million euros in a single year.
The new French law has been created to make the technology giants pay more for their profits in the Gallic country.
What is the GAFA tax that France wants to apply?
The GAFA tax, whose acronym is the initials of Google, Amazon, Facebook and Apple claims that the big technology companies, whose profits are quite high, pay a higher tax rate since they currently pay a lower percentage of taxes than other companies with less profit.
Bruno the Mayor , France's economy and finance minister, struggled to reach a tax agreement covering the entire European Union in order to make the GAFA tax effective for all member states. However, it seems that the agreements with the EU are becoming increasingly difficult to achieve given the current difficult situation that is taking place with the Brexit in the United Kingdom.
Le Maire held a press conference today in which he assured that the tax will be introduced (in France) on January 1 regardless of what happens and will be effective throughout 2019 for an amount that we estimate to be will generate 500 million euros.
This announcement by the French country comes after months of talks with Germany to impose similar tax regulations . The nation's Finance Minister had this to say about any potential technology tax:
The debate is still ongoing between the finance ministers of Europe and the G7/G20 countries. The federal government still aims to ensure fair taxation for internet companies.
Emmanuel Macron , president of the Republic of France who alreadyreceived Tim Cook last Octoberwhen the CEO was touring Europe, he recently stated that the GAFA tax emanates from the European Commission, who proposed to impose on these large companies a tax of 3% of the turnover generated by their digital services. Macron also warned that France will fight to the end to make this digital taxation possible.