French and U.S. officials agreed to come up with a compromise on a new French tax on services provided by internet firms.
As verified by the spokesperson of the Finance Ministry of France, the agreement underscores France paying companies the difference between its digital tax and other taxes coming from the Organization for Economic Cooperation and Development (OECD).
“We have reached a very good agreement,” said French President Emmanuel Macron during the G7 summit held in France on Monday.
In July, France approved a 3% tax from tech companies’ revenue coming from selling targeted advertising collecting user data. This digital services tax was only imposed on companies with revenue amounting to $27 million in France and $830 million worldwide.
Big internet companies like Google and Amazon were some of those U.S. companies affected by the new tax.
The G20 finance ministers all concurred with a new tax scheme next year.