France and the United States have reached a truce on an argument over a controversial French “digital tax” that was set to strike a few of America’s most significant tech companies.
This year, France passed a law requiring large digital service companies to pay a 3 percent tax on total annual income generated by providing services to French users. The United States immediately pressed back on the plan, saying the tax was intended directly at significant American tech companies like Google, Facebook, and Amazon.
However French president Emmanuel Macron said on Twitter this week that he ‘d had a “terrific conversation” with President Donald Trump about the tax. The Wall Street Journal reported that France had agreed to hold off the tax till the end of 2020 while the US delays the tariffs.
Today, at the World Economic Forum in Davos, Switzerland, United States Treasury Secretary Steven Mnuchin and French finance minister Bruno Le Maire officially announced the ceasefire, according to the Financial Times The settlements will continue, as the 2 nations talk over a broader global arrangement on taxes in2020