PARIS, France — France could take aim at the digital revenue of global tech companies that hold a strong position on the market.
According to French Finance Minister Bruno Le Maire, he believes that a three percent tax on the French revenue of large internet companies could yield 500 million euros (568.5 million pounds) per year.
The tax is aimed at companies with worldwide digital revenue of at least 750 million and French revenue of more than 25 million euros.
LeMaire 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.
“A taxation system for the 21st century has to built on what has value today, and that is data,” Le Maire said.
He added it is also a matter of fiscal justice, as the digital giants pay some 14 percentage points less tax than European small-and-medium sized companies.
Fairer taxes are a key demand of the “yellow vest” protests seen across France in the past three months.
Le Maire said the tax would target platform companies that earn a commission on putting companies in touch with customers.
The tax would also target the sales of personal data for advertising purposes.
In order to avoid penalizing companies who already pay taxes in France, the amount paid will be deductible from pretax income, Le Maire said.
He will present a draft law to the cabinet on Wednesday before it is presented to parliament.
