Frances's Digital Services Tax Discriminates Against US Companies - Trade Representative

WASHINGTON (UrduPoint News / Sputnik - 03rd December, 2019) The Office of the US Trade Representative said in a release that it has concluded that France's Digital Services Tax discriminates against American companies.

"The US Trade Representative has completed the first segment of its investigation under section 301 of the Trade Act of 1974 and concluded that France's Digital Services Tax (DST) discriminates against US companies," the release said on Monday.

US digital companies like Google, Apple, Facebook, and Amazon are impacted by France's Digital Services Tax, the release said.

The US Trade Representative will issue a Federal Register notice that solicits comments from the public on the agency's proposed action which includes duties of up to 100 percent on certain French products in addition to seeking comment on the option of imposing fees or restrictions on French services, the release said.

Public comment on the US Trade Representative's proposed action must be submitted by January 6, 2020 and post-hearing rebuttal comments by January 14, 2020, the release said.

The list of French products facing potential duties has a trade value of about $2.4 billion, the release said.

Moreover, US Trade Representative Robert Lighthizer said in the release that the United States is exploring whether to open Section 301 investigations into the digital tax services of Austria, Italy, and Turkey.

In mid-July, the French parliament adopted a law on a tax on services of large technology companies. The tax targets US heavyweights Google, Amazon, Facebook, Apple, occasionally referred to as GAFA, as well as several other companies. The new tax is to be applied to companies that have a total annual revenue of more than 750 million Euros (about $833 million) with more than 25 million euros in France. They will be required to pay a 3 percent tax on annual sales generated in France.