Tag Archives: France

What’s the current status of France’s proposed digital tax?

January 22, 2020 By in digital tax, France, Uncategorized Tags: , , , , , , , , , , Leave a comment
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Last year, France threatened a “digital tax” of 3% on digital revenue of big tech companies such as Facebook and Google. In response, the US threatened tariffs on $2.4 billion of French goods such as wine, cheese, and makeup.

On Monday, January 20th, France said they would delay the the tariffs for the remainder of 2020 in response to US pressure.

And earlier today, at the Davos World Economic Forum, US Treasury Secretary Steven Mnuchin reiterated the Trump administration’s claim a digital tax is discriminatory and in response, he threatened tariffs on auto manufacturers if a deal does not work out and the digtal tax is put into effect.

What’s next? Treasury Secretary Mnuchin and his counterpart, France’s foreign minister Bruno Le Maire met earlier today (Wednesday January 22nd), but no news has been released about an agreement between the US and France. Will post more news as it is released.

US may impose 100% tariff on French champagne, cheese and handbags over digital services taxes.

December 5, 2019 By in digital services, France, Uncategorized Tags: , , , , 1 Comment
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This past Monday, the Trump administration announced the United States may impose duties of 100% on $2.4 billion in imports from France of items including champagne, handbags, and cheese in response to France’s 3% tax on digital services earned by companies with more than $27 million in French revenue and 750 million euros worldwide.

The US opposition to the tax has bipartisan support, with top Republican and top Democrat Senators Charles Grassley and Ron Wyden claiming “the French digital services tax is unreasonable, protectionist and discriminatory.”

French officials counter by saying the digital tax is not aimed specifically at US technology companies, but rather any digital firm.

The public is able to submit public comments through January 14th on the proposed tariffs and a public hearing is scheduled for January 7th.

If you have any questions how the proposed duties may impact your business, contact experienced trade attorney David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

France to begin digital tax against Google, Amazon, Facebook, and Apple.

July 27, 2019 By in France, GAFA, Uncategorized Tags: , , , Leave a comment
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While the Trump administration investigates Google and other tech companies for potential anti-trust violations here in the US, the Trump administration has threatened retaliatory tariffs against French imports if France implements a tax on digital activities.

The digital tax law was passed by the French Parliament on July 11th and to tax Google, Amazon, Facebook and Apple (known as the “GAFA” companies). The 3% tax on digital services would generate 400 million euros in 2019 and expected to generate 650 million by 2022.

In response, the US Trade Representative has begun an investigation against France for unfairly targeting US-based companies and is now open for public comment before a public hearing on August 19th.

We may see new tariffs on the over 36 billion in French imports into the US starting in August. If you import any items from France and want to know how you may be impacted, contact experienced trade attorney David Hsu at 832-896-6288 or by email at dh@gjatradelaw.com, attorney.dave@yahoo.com.

France imposes 3% tax on US technology companies.

July 12, 2019 By in France, Import, Uncategorized Tags: , , Leave a comment
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On January 11th, the French Senate and National Assembly passed a 3% tax that will impact American technology firms such as Google and Facebook. In response, the US Trade Representative Robert Lighthizer said the US Office of the Trade Representative will start their own investigation to determine whether the French bill is discriminatory or unreasonable and burdens or restricts US commerce.

An investigation may result in retaliatory tariffs on French goods such as wine, cheese and perfume. In fact, Trump in the past has hinted at placing tariffs on French wine since France places higher tariffs on imports than the US does. CNBC reports France exported $3.6 billion in wine to the US in 2018, making America France’s largest export market.