U.S.-France Digital Tax framework being negotiated at Organization for Economic Cooperation and Development

In a statement, French President Emmanuel Macron stated he has had a “great discussion” with U.S. President Donald Trump regarding the introduction of a digital tax planned by France; both countries have agreed to collaborate and avoid further rise in tariffs.

According to aa French diplomatic source, Macron and Trump have agreed to hold off on a potential tariffs war until the end of 2020 and continue negotiations at the Organization for Economic Cooperation and Development (OECD) on the digital tax during this period.

“They agreed to give a chance to negotiations until the end of the year,” said the source. “During that time period, there won’t be successive tariffs.”

In July 2019, France had decided to levy a 3% tax on digital services earned in the country for companies who have an annual turnover of more than $28 million (25 million euros ) in France and 750 million euros worldwide.

In response, the United States had threatened to impose taxes on French products.

French authorities have highlighted that any international agreement on digital taxation reached within the OECD will supersede the French tax.

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