G7 leaders talk climate, trade and Iran: live updates – CNN
France’s new digital tax is a hot topic at the G7 summit.
Starting January 2020, France will start charging a 3% tax on revenue earned by large internet companies in the country. American companies such as Amazon, Facebook and Google will be impacted.
The Trump administration has staunchly opposed the move, and the president himself has even threatened to place tariffs on French wines and other French products in retaliation for the new levy.
On Monday, Trump said the US and France were getting closer to striking a deal on the issue.
The press department of the French finance ministry confirmed Monday that US and French negotiators have reached a compromise agreement, which will be submitted to Trump and French President Emmanuel Macron later on Monday.
The world’s richest countries are currently working on an international digital tax proposal through the Organisation for Economic Co-operation and Development (OECD). However, some countries, including France and the UK, have argued the OECD plan is taking too long to draw up and announced they would impose their own interim tax until the global scheme is put in place.
The French finance ministry confirmed reports that the compromise would consist of France repaying to companies the difference between the French tax and the planned mechanism being drawn up by the OECD.