US to probe French plan for tax on tech companies - Bloomberg Tax

US to probe French plan for tax on tech companies - Bloomberg Tax

REUTERS: U.S. President Donald Trump is set to order an investigation into France's planned tax on technology companies that could potentially lead to the United States imposing new tariffs or other trade restrictions, Bloomberg Tax reported on Wednesday.

The announcement, which was expected on Wednesday in Washington, will give U.S. Trade Representative Robert Lighthizer up to a year to investigate if France's digital-tax plan would hurt U.S. technology companies, Bloomberg Tax said, citing two people familiar with the matter.

French Finance Minister Bruno Le Maire said in March that a 3per cent tax on the French revenue of large internet companies could yield 500 million euros (US$562.75 million) per year.

Le Maire said the tax would target some 30 companies, mostly American but also Chinese, German, Spanish and British, as well as one French firm and several firms with French origins that have been bought by foreign companies.

The tax would affect companies with at least 750 million euros in annual revenues and apply to revenue from digital business including online advertising. Companies such as Alphabet Inc's Google, Apple Inc , Facebook Inc and Inc would likely be subject to the tax.

(Reporting by Sathvik N in Bengaluru; Editing by Cynthia Osterman)

Source: Reuters