France hits Amazon and Google with 3pc digital tax

The 'GAFA' taxwill apply to digital companies with global revenues of over 750 million euros and French revenue over 25 million euros.

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The French government has introduced a 3pc tax on the French revenues of internet giants like Google, Amazon and Facebook, reports The Telegraph.

The bill is an attempt to get around tax avoidance measures by multinationals, which pay most of their taxes in the EU country they are based in - often at very low rates.

That effectively means the companies pay little tax in countries where they have large operations.

Known as the “GAFA” tax after the initials for Google, Apple, Facebook and Amazon, it will apply to digital companies that have global revenues of over 750 million euros ($848 million), and French revenue over 25 million euros.

That will help protect startups, Finance Minister Bruno Le Maire said. About 30 companies, mostly based from the US, but also from China and Europe, will be affected.

France has become the first European country to implement this tax independently, after a European Union-wide proposal failed to take off last year and now faces continued delays.

Read more of this report from The Telegraph.

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