France issued notices to tech giants over digital service tax
France issued notices to tech giants over digital service tax
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Finance ministry has informed that France`s finance ministry has sent out notices to big tech companies liable for its digital service tax to pay the levy as planned in December. France hung the tax collection, which will hit big technology companies like Facebook and Amazon, early this year while negotiations were underway at the Organisation for Economic Cooperation and Development (OECD) on an overhaul of international tax rules. 

The finance ministry has announced from a long period that it would collect the tax in December as planned if the talks proved unfruitful by then, this is what it happened when the nearly 140 countries involved agreed last month to keep negotiating until mid 2021. "Companies subject to the tax have received their notice to pay the 2020 installment," a ministry official said. The companies with revenues of more than 25 million euros there and 750 million euros worldwide were imposed a extra 3% levy on revenue from digital services earned in France. 

Facebook`s stand "is to ensure compliance with all tax laws in the jurisdictions where we operate", it said, adding it had received its tax bill from the French authorities. Amazon has received a reminder from the French authorities to pay the tax, according to a Amazon person familiar with the matter. French ministry has said it will withdraw the tax as soon as an OECD deal is fulfilled to update the rules on cross-border taxation for the age of online commerce, where big internet companies can book profits in low-tax countries regardless of where their customers are. 

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