France, US Strike Deal to Proceed With OECD Digital Tax Talks - French Finance Minister

On Tuesday, French Finance Minister Bruno Le Maire admitted that Paris’ talks with Washington on the taxation of digital companies “remained difficult” even though the two sides vowed to shun a trade war.

Speaking at the World Economic Forum in the Swiss resort of Davos, French Finance Minister Bruno Le Maire said that Paris and Washington had reached a mutual deal on holding global digital tax talks within the Organisation for Economic Co-operation and Development (OECD).

"We had long talks this morning with the U.S. Treasury Secretary and the OECD Secretary-General, and I am happy to announce to you that we have found an agreement between France and the United States, providing the basis for work on digital taxation at the OECD," Le Maire said.

Last year, US President Donald Trump threatened to impose tariffs on French goods in response to the latter's new digital service tax on the annual revenues of mostly American companies.

The United States launched a probe into the tax, which it describes as "discriminatory or unreasonable" and "burdens or restricts United States commerce."

The three-percent tax, called "GAFA" by the French media (an acronym that means Google, Apple, Facebook and Amazon) targets digital companies with global annual sales of more than €750 million ($849 million) and sales in France of at least €25 million ($27.7 million).