TASS, 4 December. France and Germany will abandon the project of a tax on digital services, which, according to the plan of the European Commission, the first fall in force in the territory of the European Union by the American company in the field of digital technology with an annual turnover of over €750 million this was announced on Monday the London newspaper Financial Times, citing its own sources. The new bill will only affect the income received from advertising on the Internet.
“In order to save the EU’s plans to change tax rules for companies in the field of digital technologies, Paris and Berlin on Tuesday will present a new project, which is a 3 percent tax will be levied on income from advertising in the virtual space”, — quotes the edition of the text of his trapped in the document. According to the Financial Times, company Facebook and Google will be included in the new version of the bill, but some other retailers, including Amazon, will not fall under its action.
According to the publication, in the framework of a compromise solution to activity on online platforms, as well as implementation details will not be taxed. As specifies the Financial Times, the new draft law, the authorities want to protect the German car manufacturers and to overcome the opposition of the economies of the countries of Northern Europe.
It is expected that the Franco-German proposal could be approved by EU Ministers in March 2019.
Earlier, the Minister of economy and Finance of France Bruno Le Mayor stated that France insists on the adoption of a European agreement on the introduction of a tax on digital services due to the fact that it will allow the EU to reaffirm its sovereignty and resistance on the part of the United States is pushing for such a solution. Opponents of the introduction of this tax proposed by the European Commission, in particular Denmark, believe that the EU could face an economic response to the United States, whose companies are the first to fall under the new tax.
In the spring the European Commission has prepared a draft digital tax. This tax should be levied at 3% of income on the territory of the EU companies, including multinational operating in the field of digital technologies, the annual turnover of which exceeds €750 million First under this tax will subject American industry giants such as Microsoft, Apple, Google and Facebook, but to its introduction it needs to be approved by the EU Council and the European Parliament.
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