The press release specifies that since 2018, Facebook has changed its sales structure so that “the revenues of advertisers supported by our teams in France are recorded in this country”.
The payment by the American digital giants of tax on income in the country in which it is accumulated has been the subject of a long-standing dispute between France and the United States. Many have their EU headquarters in countries with low tax regimes.
“This year, we are paying 8.46 million euros in income tax, an increase of almost 50% compared to last year,” added the spokesperson.
“We have also concluded an agreement with the tax authorities covering the years 2009-2018, under which we will make a payment of 106 million euros. ”
France to levy digital tax despite US decision to withdraw from talks
The dispute between France and the United States over the tax of digital giants has escalated to the point that the United States in July unveiled heavy import duties on France.
The office of US Trade Representative Robert Lighthizer has ruled that France’s digital services tax is discriminatory and “unfairly targets US digital technology companies,” and said it will impose punitive tariffs of 25% on 1 , 3 billion dollars of French products.
But it will delay collecting the charges to allow time for the dispute to be resolved.
Major European Union countries say GAFA – Google, Apple, Facebook and Amazon – unfairly exploit tax rules that allow them to report profits in tax havens, depriving governments of a fair share of their tax payments .
Will the global internet giants be forced to pay for the European Covid bailout?
Meanwhile, France, Britain, Spain, Italy and others have imposed taxes on the biggest digital companies.
U.S. officials have criticized the measures as discriminatory against U.S. businesses and said any new levies should only come as part of a broader overhaul of international tax rules.
In January, 137 countries agreed to negotiate a deal on how to tax multinational tech companies by the end of 2020, under the auspices of the Paris-based Organization for Economic Co-operation and Development.
Originally posted on RFI