Stephen Mnuchin

France and US reach preliminary digital tax agreement

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France and the United States reached a preliminary agreement on the taxation of major IT companies.

According to the source, the agreement was reached by Bruno Le Mayor (French Minister of Economy) and Stephen Mnuchin (US Secretary of the Treasury), as well as supported by the presidents.

The preliminary agreement states that the Organization for Economic Co-operation and Development (OECD) will adopt a unified taxation system for digital companies by the end of 2020.  Until this time, France will levy the digital tax adopted by the Senate on July 11, 2019, according to which all companies whose turnover exceeds € 750 million in the world and € 25 million in France will have to pay a tax of 3%.

Later, after the adoption of the unified system by the OECD, France will pay the companies the difference between the current French tax and the adopted one.

Recall that at the moment, the US Treasury, according to the statement of IT companies, is checking the validity of the digital tax levy in France.  Since the Internet giants in their statement emphasized that the introduction of this tax is discrimination against American companies.

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