USTR to announce response to France's digital services tax Monday

Source: Xinhua| 2019-11-28 03:18:28|Editor: ZX
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WASHINGTON, Nov. 27 (Xinhua) -- The United States Trade Representative (USTR) will announce any proposed action regarding its Section 301 investigation into France's digital services tax on Monday, according to the USTR's Office.

"The United States Trade Representative is in the process of completing its investigation, under Section 301 of the Trade Act of 1974, of France's Digital Services Tax (DST) and intends to issue its report in that investigation on Monday," the USTR's Office said in a statement on Wednesday.

"At that time, the United States Trade Representative also will announce any proposed action in the investigation," the statement added.

The United States initiated its Section 301 investigation into France's planned tax on digital services on July 10, accusing the French government of "unfairly targeting the tax at certain U.S.-based technology companies."

Despite opposition from the United States, the French Parliament passed a new law on July 11 to impose a tax on digital giants, including American giants Google, Amazon, Facebook and Apple.

The French digital services tax imposes a 3-percent tax on total annual revenues generated by some companies from providing certain digital services to, or aimed at, French users.

The tax applies only to companies with total annual revenues from the covered services of at least 750 million euros (834 million U.S. dollars) globally and 25 million euros in France.

French Finance Minister Bruno Le Maire has said the tax is necessary to make internet giants pay their fair share of taxes.

It's not yet clear what action the United States might take against France's digital services tax. U.S. President Donald Trump had threatened to impose retaliatory tariffs on French wines.

It remains to be seen if the digital tax dispute between the United States and France will intensify or even extend to more European countries.