The two countries agreed on a truce whereby the US would back off from tariffs and France would delay collection of its digital tax to the end of 2020 to allow for renewed efforts to reach a multilateral solution.
The US Trade Representative says countries that have either adopted or are considering digital taxes include Austria, Brazil, the Czech Republic, France, India, Indonesia, Italy, Spain, Turkey and the UK.
In April, India expanded the scope of its 6% “equalisation levy” — a withholding tax on foreign online advertising platforms — to include digital companies with a “significant economic presence” that engage with or sell to Indians.
France has said it would drop its tax if the US and other countries agree to a global effort for a uniform approach under the stewardship of the Paris-based Organisation for Economic Cooperation and Development.
To do that, French tax collectors propose to tax Internet companies proportionally to their “digital presence” in the country relative to the rest of the world.
