Facebook undertakes to pay taxes in France for the years 2009 to 2020

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US social media giant Facebook has agreed to pay the French government 106 million euros in arrears for its French operations over a 10-year period starting in 2009. It has also agreed to pay 50% more taxes this year.”We take our tax obligations seriously, pay the taxes we owe in all the markets in which we operate and work closely with tax administrations around the world to ensure compliance with all applicable tax laws and resolve any disputes.” , a spokesperson for Facebook France said in a statement.

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 .

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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.

(with AFP)

Originally posted on RFI

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