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The United States warns France against a new taxation on digital giants
America urged France to abandon plans for a tax on digital leaders like Facebook and Apple, warning that it would damage American business.
U.S. Secretary of State Mike Pompeo expressed his objections when he met with French Foreign Minister Jean-Yves Le Drian in Washington on Thursday during the NATO alliance's 70th anniversary celebrations.
Secretary Pompeo urged France not to authorize a tax on digital services that would adversely impact large US technology firms and French people who use them, the State Department said in a statement.
Last month, France announced a proposal for legislation imposing a 3% tax on digital ads, the selling of personal data and other revenue from any technology business that receives more than €750 million a year worldwide.
This initiative comes as a result of increasing public indignation at the minimal tax charged by some of the wealthiest companies in the world, which are operating in jurisdictions that charge low rates.
France led the campaign after a European Union-wide initiative was stifled by low-tax countries such as Ireland, which have wooed big technology firms.
Many countries are considering joining the French rule, including the United Kingdom, Spain, Austria and Italy.
Last month, France announced a proposal for legislation imposing a 3% tax on digital ads, the selling of personal data and other revenue from any technology business that receives more than €750 million a year worldwide.
This initiative comes as a result of increasing public indignation at the minimal tax charged by some of the wealthiest companies in the world, which are operating in jurisdictions that charge low rates.
France led the campaign after a European Union-wide initiative was stifled by low-tax countries such as Ireland, which have wooed big technology firms.
Many countries are considering joining the French rule, including the United Kingdom, Spain, Austria and Italy.
The State Department said that Pompeo had also spoken to Le Drian about the fate of foreign fighters from Syria.
The United States has been encouraging France and other Western countries to send home their citizens who joined the Islamic State organization while Washington prepares to withdraw its forces.
Repatriation is a highly unattractive choice for European countries with recent experience of attacks.
