Kyaw Thu
12-4-2019
To explore a new taxation installed in France called GAFA
GAFA is an acronym used to refer to the group of four digital giants of the web, which are Google, Apple, Facebook, Amazon.
According to the law and tax firm Taj mentioned that 26 companies will this year pay 3% of revenue generated in France to the tax authorities, as part of the Gafa tax, which must be applied retrospectively on January 1, 2019.
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1 Alibaba Amadeus Amazon
2 Amazon Springer Criteo
3 Apple Booking Ebay
4 eBay Expedia FB
5 Google MatchCom Google
6 Groupon Randstad Microsoft
7 Rakuten Recruit Twitter
8 Schibsted Saber Verizon
9 Wish TravelportWW
10 Zalando Tripadvisor
11 Uber
France Economy Minister Bruno Le Maire explained that this tax is to achieve a fairer and more efficient tax system. The digital giants pay 14 percentage points less tax than European SMEs, he added.
The tax will affect companies with a worldwide turnover on their digital activities of over €750 million and a turnover in France of over €25 million.
It will apply to 3% of digital turnover (advertising revenues, commissions received by the platforms, revenue from the resale of personal data) generated in France from 1 January 2019.
Six other European Union (EU) Member States are setting up or considering similar taxation, and the European Commission backs these plans.
France will accelerate work within the OECD to change international tax rules.
Chip Harter,the head of the US Treasury for international tax issues, deemed “discriminatory” the French project of taxation of the digital giants on the basis of their turnover. He threatens to seize the OECD.