top cx logo
cx logo
Explorearrow down
search icon

France's 3% tax to hit Google and Facebook

France is imposing a 3% tax on big digital companies.

Known as the “Gafa tax” after the US firms it targets (Google, Amazon, Facebook and Apple), it starts this year and is imposed on annual turnover in France.

It is expected to bring in €450million this year.

France is the first country to impose this tax and wants other OECD countries to follow.

Firms such as Amazon and Google operate globally and take advantage of optimisation fiscale to declare advertising income in lower-tax countries.

The EU planned to bring in a “Gafa tax” but met opposition from countries such as Ireland and Luxembourg, which have low taxation rates.

Sweden is also opposed. Some countries fear the US will bring in a similar tax on EU firms.

Economy Minister Bruno Le Maire said: “It is better to have an imperfect solution than discussion without action.”

The tax applies to all digital companies with global revenue above €750million, and above €25million in France. Around 30 companies are concerned, including Airbnb and Booking.

Resident or second-home owner in France?
Benefit from our daily digest of headlines and how-to's to help you make the most of life in France
By joining the newsletter, you agree to our Terms & Conditions and Privacy Policy
See more popular articles
The Connexion Help Guides
featured helpguide
Healthcare in France*
Featured Help Guide
- Understand the French healthcare system, how you access it and how you are reimbursed - Useful if you are new to the French healthcare system or want a more in-depth understanding - Reader question and answer section Aimed at non-French nationals living here, the guide gives an overview of what you are (and are not) covered for. There is also information for second-home owners and regular visitors.
Get news, views and information from France