France plans to levy taxes on large American technology companies, and the United States launches a 301 investigation.

[Text/Observer Network Xu Lei]

Just the day before France was about to pass a tax on the Internet giant, the United States rarely made a move on this ancient ally.

According to a report on July 11th, local time in Reuters, the Office of the US Trade Representative announced on the 10th that Trump ordered an investigation on French digital service tax in accordance with Section 301 of the US Trade Act of 1974. According to the report, this investigation may lead to the implementation of new tariffs or other trade restrictions in the United States.

Previously, France planned to impose a 3% tax on enterprises providing digital services to French consumers, targeting companies with global income of more than 750 million euros and annual income of more than 25 million euros in France. If the digital service tax in France is passed, companies such as Apple, Facebook and Amazon may be affected.

US Trade Representative Wright Heze said that the French tax collection was "unfair" to American technology companies.

Washington post said that the 301 investigation was the same investigation that led the United States to impose tariffs on China last year. This time, the United States rarely used this to deal with close ally France, highlighting the Trump administration’s intention to continue to take a tough attitude on trade issues.

Trump and Macron Source: vision china

US Trade Representative Wright Heze said in a statement: "The digital service tax that the French Senate expects to pass tomorrow (11th) unfairly targets American companies, and the United States is very worried about this." This gives Wright Heze a year to investigate whether the French digital tax plan will harm American technology companies.

The statement said that the French digital service tax "covers services that American companies are leading in the world." The structure of the proposed new tax and the statements of officials indicate that the tax in France unfairly targets American technology companies. "

Wright Heze said that Trump "instructed us to investigate the impact of this legislation and determine whether it is discriminatory and unreasonable, and whether it will impose a burden or restriction on American business."

He said that the United States "will continue to work with other OECD member countries to reach a multilateral agreement to meet the challenges posed by the increasingly digital global economy to the international tax system."

Lemerre, the French finance minister, said in March this year that a 3% tax on large Internet companies could generate 500 million euros (3.865 billion yuan) in annual revenue.

Lemerre said that the tax will be targeted at about 30 companies, most of which are American companies, but also China, German, Spanish and British companies, as well as a French company and several French companies acquired by foreign companies.

This tax will affect companies with an annual income of at least 750 million euros (5.798 billion RMB), and apply to digital business income including online advertising.Companies such as Apple, Facebook and Amazon may be taxed.

According to Washington post, the bill will soon be passed in both houses of the French Parliament, and President Macron may sign the bill soon. Macron has expressed his support for the tax. French officials did not immediately comment on the US move.

In April 2018, Macron interacted with Trump during his visit to the United States, but the differences between the two in trade were also very obvious.

According to the report, the 301 investigation is the same kind of investigation that led the United States to impose tariffs on China last year. This time,It is rare for the United States to use this to deal with close ally France, highlighting the Trump administration’s intention to continue to take a tough attitude on trade issues.

Trump has been complaining about the unfair trade between Europe and the United States. This unusual move may aggravate the trade tension between the United States and Europe.

At the same time, some other countries are also considering imposing similar taxes because they believe that the wealthy American technology giants have not paid enough taxes on a global scale. The survey also shows that American officials and industry executives are increasingly worried about the prospect of new taxes imposed on them by countries outside France. Italy, Austria, Poland, the Czech Republic and New Zealand are also considering digital taxes.

On the 10th, a science and technology industry association welcomed the US investigation and criticized the French plan, saying that tax disputes should be settled through multilateral negotiations. At present, the negotiations are led by the OECD.

Jennifer McCloskey, vice-chairman in charge of policy of the Information Technology Industry Council, whose members include major technology companies, said: "We support the US government’s move to investigate these complex trade issues, but urge it to conduct the 301 investigation in the spirit of international cooperation without using tariffs as a remedy. We also once again call on France and other countries considering unilateral actions to withdraw individual measures and recommit themselves to the ongoing multilateral economic cooperation process. "

Amazon said on the 10th that the US investigation is "an important step to successfully solve the poor and discriminatory structure of France (tax), which, if implemented, will cause great harm to American and French consumers."

Google also expressed its support for a new "comprehensive and multilateral agreement" on taxation, rather than "discriminatory unilateral taxation".

Both Facebook and Apple declined to comment.

In April 2018, Macron gave the White House an oak seedling, which they planted together. Later, the saplings died quietly … Source: vision china

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