France's Senate has approved a tax on big technology firms, raising the possibility of a new trade dispute with the United States.
The three percent levy approved on Thursday will apply to revenue earned in France through digital services. Businesses with annual sales of more than 845 million dollars worldwide and over 28 million dollars in France will have to pay the tax.
This includes tech giants, such as Google, Apple, and Facebook. The French government estimates the duty will bring in about 450 million dollars this year.
Earlier this week, the administration of U.S. President Donald Trump ordered an investigation into the tax based on Section 301 of the U.S. Trade Act. It says the levy will unfairly target U.S. companies and suggested possible retaliatory tariffs on French products.
French Economy Minister Bruno Le Maire said before the tax vote France and the U.S. should solve their disputes not by threats but in other ways.
The three percent levy approved on Thursday will apply to revenue earned in France through digital services. Businesses with annual sales of more than 845 million dollars worldwide and over 28 million dollars in France will have to pay the tax.
This includes tech giants, such as Google, Apple, and Facebook. The French government estimates the duty will bring in about 450 million dollars this year.
Earlier this week, the administration of U.S. President Donald Trump ordered an investigation into the tax based on Section 301 of the U.S. Trade Act. It says the levy will unfairly target U.S. companies and suggested possible retaliatory tariffs on French products.
French Economy Minister Bruno Le Maire said before the tax vote France and the U.S. should solve their disputes not by threats but in other ways.
◆levy 課税 an additional sum of money, usually paid as a tax
◆bring in 生じさせる
◆retaliatory tariff 報復関税
