France’s planned internet giant tax could rake in €500m annually

France is planning to tax the globe’s internet giants, a move that could bring an additional €500-million (around R8-billion) to the country per year.

According to the country’s finance minister Bruno Le Maire, the tax is aimed at firms that earn at least €750-million (around R12-billion) globally, and €25-million (around R400-million) in France.

This would include more than 30 companies, including the likes of Amazon, Apple, Google, and Uber.

“A taxation system for the 21st century has to built on what has value today, and that is data,” Le Maire told French newspaper Le Parisien, as reported by Reuters.

While the bill hasn’t yet made it to the French parliament, the idea has gained momentum in other European countries.

In October 2018, the UK government announced a tax on US digital firms, which will come into effect in 2020.

Additionally, South Africa has also toyed with the idea of a digital tax.

In November 2018, the government announced that companies like Netflix will be liable to register for VAT if it offers “electronic services”.

Considering that this umbrella includes broadcasting, cloud computing, gaming and online reservations, the move could include the likes of Microsoft, Airbnb, and Google.

Feature image: martaposemuckel via Pixabay (CC0)