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France and the U.S. Reach Compromise on French Digital Services Tax

27 August 2019

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Approved Changes

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France-United States

During a joint press conference with U.S. President Donald Trump on 26 August 2019, French President Emmanuel Macron announced that a compromise has been reached regarding the French Digital Services Tax (DST), which has been strongly opposed by the U.S. as unfairly targeting U.S. companies. The recently approved French DST applies at a rate of 3% on the portion of turnover connected with France in relation to the operation of digital platforms (interfaces) by companies with annual global revenue exceeding EUR 750 million and French revenue exceeding EUR 25 million ({News-2019-07-29/A/3-previous coverage}). The compromise was reached by French Finance Minister...