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Daily Tax Report: International

Tech Giants’ Digital Tax Headache Aggravated by Location Tracking

Aug. 19, 2019, 6:36 PM

Tech companies said they face steep challenges to collect the data they’ll need to pay France’s new digital tax—which could strengthen the U.S.’s trade case against it.

Speaking at an Aug. 19 U.S. trade hearing into the French measure, executives from Amazon.com Inc., Facebook Inc., and Alphabet Inc.'s Google said they faced big compliance hurdles—including building new systems—to calculate their tax payments.

For Amazon, compliance will result in costs “in the millions,” said Peter Hiltz, the company’s director of international tax and policy planning.

The French measure imposes a 3% tax on revenue tech giants earn from digital advertising,...

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