The Office of the U.S. Trade Representative (USTR) today announced that the USTR is expected to complete its investigation under Section 301 of the Trade Act of 1974 of France’s digital services tax and issue its report on that investigation on Monday, December 2, 2019.
According to the USTR release, any proposed action in the investigation will be announced at that time.
The French government in July 2019 enacted legislation providing a 3% tax on revenues generated by certain companies from the provision of digital services. The tax is a 3% levy on gross revenues generated from providing two categories of digital services—“digital interface” services and “targeted advertising” services—to, or aimed at, persons in France. The digital services tax in France applies only to companies that generate, from providing the taxable services, €750 million globally and €25 million for services provided to, or aimed at, persons in France. The tax applies retroactively, beginning January 1, 2019. Read TaxNewsFlash
In July 2019, the USTR initiated an investigation of the French digital services tax pursuant to Section 301 of the Trade Act of 1974. A public hearing in connection with the investigation was held in August 2019. Read TaxNewsFlash
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.