PublishedJanuary 21, 2020

CCIA Welcomes Suspension of France’s Digital Tax, Encourages Global Tax Reform

Brussels, BELGIUM — According to news reports French President Emmanuel Macron has an agreement with the United States to pause collection of the French digital tax until the end of this year. This would mean no U.S. retaliatory tariffs on French exports and more attention to advance ongoing international tax negotiations. More than 140 nations, including France and the United States, are taking part in the OECD-led multilateral efforts to address tax challenges from digitalisation of the economy by the end of 2020.

Senior officials are scheduled to discuss taxation issues this week at the World Economic Forum in Davos, Switzerland and at the OECD next week.

Other countries, including Italy, Austria, the UK and Turkey have or are considering adopting national digital taxes. The Canadian government this week told reporters that it would not pursue a French-style digital tax but instead prioritise multilateral tax reform.

The Computer & Communications Industry Association has long warned against discriminatory Internet taxes, including at a hearing earlier this month, where the association called for a strong response as the US Trade Representative considered tariffs in response to the French digital services tax.

The following can be attributed to CCIA Vice President and Head of office Christian Borggreen:“We welcome the suspension of France’s discriminatory digital tax and encourage other nations to similarly halt their tax plans and instead focus on achieving more ambitious, global tax reform.”

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