As Nations Look to Tax Tech Firms, U.S. Scrambles to Broker a Deal
Posted in: Government & Policy at 12/07/2019 22:52
For most of the 21st century, wealthy nations have engaged in a race to the bottom on corporate taxes, cutting rates in an effort to poach business activity across borders. Very quickly, that script has flipped.
Developed countries are now moving to impose new taxes on technology companies, like Facebook and Google, that have large presences in their citizens’ daily lives but pay those countries little tax on the profits they earn there.
France moved on Thursday to become the first country to impose a so-called digital tax of 3 percent on the revenue companies earn from providing digital services to French users. It would apply to large companies, numbering more than two dozen, with robust annual sales in France, including United States-based Facebook, Google and Amazon. British leaders also detailed plans on Thursday to impose a similar tax, of 2 percent, on tech giants. And the European Union has also been mulling a digital tax.