FRANCE - Lawmakers Approve 3% Tax on Online Giants

Arno Froese

France’s lower house of parliament approved a small, pioneering tax on internet giants like Google, Amazon and Facebook—and the French government hopes other countries will follow suit.

The bill aims to stop multinationals from avoiding taxes by setting up headquarters in low-tax EU countries. Currently, the companies pay nearly no tax in countries where they have large sales like France.

The bill foresees a 3% tax on the French revenues of digital companies with global revenue of more than 750 million euros ($847 million), and French revenue over 25 million euros.

It could affect U.S. companies including Airbnb and Uber as well as those from China and Europe. It primarily targets those that use consumers’ data to sell online advertising.

The French Finance Ministry has estimated the tax will raise about 500 million euros ($566 million) a year this year but that should increase “quickly.”

France failed to persuade EU partners to impose a Europe-wide tax on online giants, but is now pushing for an international deal with the 34 countries of the Organization for Economic Cooperation and Development., 4 July 2019

Arno's commentary

Who pays what taxes and where is a never-ending subject, which affects virtually all countries on planet earth. In order to implement such far-reaching tax laws, there must be unity, at least within the EU. What does become clear is that these gigantic global companies know precisely how taxes can be avoided, to a certain degree. There are diverse opinions, and these will contribute to more negotiations and compromises, which in the end will lead to more solid global laws for all companies, businesses, and operators the world over.

These things belong to the development we read of in the book of Revelation, where it shows that the nations will unite for one specific purpose: to erase any dependence on the Creator, instead creating a self-made god based on human intellect; that’s in the works now.

Arno Froese is the executive director of Midnight Call Ministries and editor-in-chief of the acclaimed prophetic magazines Midnight Call and News From Israel. He has authored a number of well-received books, and has sponsored many prophecy conferences in the U.S., Canada, and Israel. His extensive travels have contributed to his keen insight into Bible prophecy, as he sees it from an international perspective.

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