Tax targeting US tech giants ‘ready by 2019’

FRANCE’s economy minister said on Friday he expects to reach agreement with Germany in the coming weeks on a European digital tax targeting US tech giants.

Bruno Le Maire told journalists that a meeting in Berlin on Friday with his German counterpart Olaf Scholz had been useful.

“I think a compromise in the coming weeks is possible and we will be able to send the clear message that we agree on a fair taxation of the internet giants,” he added.

“I remain confident that we can deliver by the end of the year.”

The two ministers met for four hours to discuss a controversial EU proposal to slap a European tax on US tech giants.

The EU proposal is for a rapid three-per cent tax on revenue generated by certain kinds of activities, such as online advertising or the selling of personal data.

France has been pressing its EU partners to sign up to such an initiative, but Germany has until now been among the sceptics.

Scholz has come out in favour of a global minimum fiscal regime for multinationals, but media reports suggest he is not yet convinced by the digital tax proposal from the EU.

Germany’s concern is that such a measure, which would target companies such as Google, Facebook and Amazon, would provoke retaliatory measures from the US.

Berlin would rather see an agreement in the framework of an international organisation such as the OECD.