PublishedJuly 10, 2020

USTR Announces Sanctions Against France in Digital Tax Investigation

Washington — USTR has announced sanctions against France that will remain suspended until France starts collecting duties under the French digital services tax. This follows USTR’s conclusion in the Section 301 investigation into the French tax that the tax discriminated against US firms. 

Several countries are in various stages of implementing digital taxes targeted at US tech companies. The Computer and Communications Industry Association has testified and offered comments against discriminatory digital taxes and supports OECD-led global tax reform. CCIA previously filed comments with the U.S. Trade Representative in August in response to the USTR’s query on the French digital tax.

The following can be attributed to CCIA President Matt Schruers:

“Today’s action sends a strong message that discriminatory taxes aimed at US companies are not a path to modernizing the global tax system. Changes to international tax rules must be negotiated in good faith through a consensus-based approach at the OECD that addresses the changes of the digitalized global economy.”

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