OECD asks for French Google tax to be replaced by a consensus one

Google setback to China

Tensions between France and the United States due to the so-called Google Tax worry the OECD. Washington is moving forward with retaliation tariffs that could be as high as 100% on French goods. The Organization for Economic Cooperation and Development asked all countries to accelerate the implementation of a global tax.

The Secretary General of the OECD, Ángel Gurría, clarified that the organization is already accelerating the process as much as possible, but noted the need for collaboration of all countries to avoid tensions such as the one that has arisen with France.

In the meantime, French Finance Minister Bruno Le Maire said on French radio that tariffs against French goods could lead to a “strong European riposte.”

The Google Tax means that in order to avoid tax optimization schemes, big tech companies that generate significant revenue in France are taxed on it. A firm that generates more than €750 million in global revenue and €25 million in France, would have to pay 3% of its French revenue in taxes. Although it is not designed to target US companies, the majority of big tech companies that operate in France are American.

The OECD, which advises 134 countries, has proposed overhauling the way multinationals in all sectors -but specially tech giants Google, Facebook, Amazon and Apple-, are taxed to ensure they pay their fair share in countries where they “have significant consumer-facing activities and generate their profits”.

You can read the OECD’s plan here.

 

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