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The measure, introduced by the government on Wednesday, would levy a 3 percent tax on revenues the tech companies generate in France from services like advertising or operating a digital marketplace.
The proposal targets about 30 firms, including some Chinese and other European businesses. The bulk, however, are U.S.-based companies. It specifically aims for companies with global revenues of at least $847 million.
The French government believes the tax could bring in around $4.5 million in its first year – and even more in the years to come.
The tax would retroactively apply to the outset of 2019.
Meanwhile, a growing share of countries are looking to devise ways to raise revenue from these tech companies, which don’t pay the same taxes as other businesses – despite raking in handsome profits.
Here’s a look at some of the other countries that have introduced similar measures, or that may follow suit:
Last year Britain unveiled a measure aimed at taxing locally-sourced revenue from online platforms to keep its tax structure up-to-date in the digital age.
The 2 percent tax is aimed at large, profitable internet companies with global revenue in excess of $641 million, as reported by The Wall Street Journal.
In October, the Spanish government released a draft bill of a digital services tax, which was marked up into a final bill in January.
The legislation seeks to impose a 3 percent tax on revenue generated from digital services like targeted online advertising. Similar to the other measures, it only targets companies with global revenue above a certain threshold.
The bill needs to be voted on by the government.
Last year, Seoul announced it was considering the need to introduce a digital tax.
The South Korean government explained that without a physical presence in the country, many of these internet companies are not subject to corporate income tax, as reported by Reuters.
A proposed 3 percent tax measure on digital services was proposed in Mexico, pertaining to digital advertising, social media platforms and the collection of personal data.
India is weighing a digital tax on companies that profit in the country, but don’t pay full taxes there. Full details regarding the rules could be released later this year.
Last month, New Zealand said it was working on a cross border digital services tax, worth 2 percent to 3 percent of revenue generated by online companies in the country, as reported by The Associated Press.