A “ridiculous” sum: Netflix would only have had to pay 564,174 euros in tax to France while the juggernaut declares its turnover in the Netherlands, estimates Capital . Only 26 million of its profits would be declared in France, a tiny portion of its income which would actually represent 800 million euros considers Capital . The magazine is based on its 6.7 million subscribers assuming that the majority adheres to the mid-range offer (11.99 euros including tax per month) according to a study of the contents of the firm Park Associates.
“If we apply to this figure Netflix's overall pre-tax margin (10%), the profit before tax in France would therefore amount to 80 million euros. With a rate of 33.3%, the video-on-demand site should therefore actually pay around 25 million euros in income tax to the French tax authorities, ”says the economist media.
Few taxes to pay, everywhere in the world
Netflix would also benefit from tax relief in the United States, particularly for R & D expenses, and would thus repatriate a majority of its profits to North America. It would also have established itself in one of its internal tax havens, Delaware.
If in France, the platform pays 20% VAT on online services and pays a 5.15% tax on its turnover generated in France to the National Cinema Center (CNC), France is considering a future law that would require Netflix to invest 25% of its revenue generated in France in French (around 20%) and European productions.
Contacted by Capital, Netflix defended itself concerning the French subsidiaries created between November 2018 and July 2019: “2019 is a start-up phase for these entities. Therefore, it is inevitable that the amount of taxes is not significant. "
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