Washington D.C. – National Foreign Trade Council (NFTC) President Rufus Yerxa today issued a statement following a proposal by the Minister of Economy and Finance of France to impose a digital services tax (DST) on French-source revenue of global technology firms.
“This French DST proposal will result in discriminatory treatment of U.S.-based digital companies and double taxation on their income, and that’s contrary to our bilateral tax treaty. The French government would be well advised to delay unilateral enactment of such a clear form of discrimination. It will create a major new irritant in a bilateral trade and investment relationship that has heretofore delivered huge mutual benefits. Instead, France, should continue working with our Treasury officials through a multilateral approach that establishes a fair tax structure for both U.S. and French companies in our two markets.”
Earlier this week, the NFTC submitted comments to the OECD on the Public Consultation Document: “Addressing the Tax Challenge of the Digitalisation of the Economy.” To read the comments, click here.