The Veterans GAFA Tax Is on the Right Track

Revenue from the “gafa tax” continues to rise: the French government expects to collect 670 million euros in 2023 under this tax, which mainly targets digital giants, according to a budget document.

Digital giants are taxed half as much as traditional companies in Europe. A situation that has prompted many member states to plead in favor of more tax justice. Despite the lack of consensus at the European level, international negotiations on a global tax could lead to the taxation of GAFAs.

Within the European Union, each member state essentially sets its own tax policy. Corporate tax can thus become a lever of attraction for some EU countries which offer particularly advantageous taxation to companies.

, digital giants Take advantage of these differences to reduce your taxes. Because even though Gafa (Google, Apple, Facebook, Amazon), and more broadly multinational companies of the digital economy (Uber, AirBnB, etc.), deployed in different regions, have one common feature: providing their services on the web allows them to locate their head office in a different country from the one where their users are located, or be able to declare all or part of the profits recorded in at least one country of your choice, ,

591 million euros at the end of the year

In the absence of an agreement in the OECD to reform the global taxation of tech giants, France implemented a national tax in 2019 aimed at capturing the portion of wealth created by Google, Apple, Facebook or Amazon (often referred to by the abbreviation Gafa). have to capture. , Other countries such as Spain and the UK have enacted similar taxes.

The Ministry of Economy has confirmed on several occasions that the French tax is set to disappear when the international taxation reform adopted at the end of 2021 under the auspices of the OECD comes into force. But the reform has been slow to translate into law internationally.

While Bursi was expected to get 518 million euros in 2022 under this at the beginning of the year “Digital Service Tax”Revenue should eventually reach 591 million by the end of the year.

Given the good financial results of companies subject to this tax, revenue should increase further to reach 670 million in 2023.

Which companies are affected?

The GAFA tax should apply to about thirty groups such as Meetic, Amazon, AirBnB, Instagram, but also to the French Criteo. The principle of imposing such a tax was a matter of relative consensus, even though the opposition wanted to highlight potential loopholes and raise awareness of the difficulties it would face. NGO Oxfam describes the GAFA tax “typical”, It brings hope of more tax justice.

Which recipe?

tax should be related to digital activities » Create value through Internet users French ” , It targets companies that have a turnover of over 750 million euros worldwide and over 25 million euros in France on their digital activities. It aims to impose 3% of the turnover achieved in France on targeted online advertising, the sale of data for advertising purposes and the connection of Internet users by platforms. is coming?

The government has again committed to the temporary nature of this tax, which has been considered “An essential lever to demand faster OECD progress on digital taxation”, According to Bruno Le Maire. , As soon as there is a solution at the OECD level, we will withdraw our national tax in favor of international taxation. The minister assured.

For the minister, she would “act as” lever in international negotiations. He promised not to relax his efforts in front of the deputies “Unless the OECD agrees”, then france will retreat “naturally its national tax”,

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