The U.S. and Europe are making progress toward a global pact on the taxation of digital services, with France’s finance minister,
Speaking at the World Economic Forum in Davos, Switzerland, Le Maire said that Treasury Secretary
“We’ve found an agreement between France and the U.S. on the basis for work on digital tax at the
When asked at a separate event in Davos, Mnuchin declined to answer if he agreed to discard the requirement for the tax to be optional. A spokeswoman from the U.S. Treasury Department didn’t reply to a request for comment.
The progress marks a rare bright spot in transatlantic relations and comes the same week that President
Last year, France introduced a 3% levy on the digital revenue of companies that make their sales primarily online, such as
Le Maire had already trumpeted a partial deal on Wednesday that would see the U.S. hold off on tariffs and France delay collecting its tax on multinational digital firms until the end of the year. The two sides worked through the night to then agree on how to move forward with talks at the OECD, Le Maire said.
If the talks fail, Le Maire said France would reinstitute its national version of the tax. European countries including the U.K., Italy and Spain are also moving ahead with their own digital services levies.
“It’s absolutely decisive for the world order to have a fair and efficient international taxation system,” Le Maire said. “European countries are tough and that’s good news because we are registering progress.”
Richard Bravo, Nikos Chrysoloras
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