Gafa tax: the United States renounces retaliation against certain European countries
Washington drops tariffs against Austria, Spain, France, Italy and the United Kingdom.
These five countries of the European Union had introduced a national digital tax.
AFP / Archives
Text by: RFI Follow
1 min
This is the end of the discord between the United States and Europe over the tax on the turnover of the digital giants.
Washington definitively abandons the customs duties against Austria, Spain, France, Italy and the United Kingdom, five countries of the European Union which had established a national digital tax.
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In 2020, these five EU countries decide to impose
national taxes
on the American digital giants, considering their tax contribution insufficient.
In retaliation, Washington then decides to impose in return customs duties on European goods imported into the United States.
But in reality, these customs tariffs, in particular on French leather goods and cosmetics, have never been applied by Washington.
A compromise was finally found between the Americans and the Europeans.
In return for the withdrawal of their national tax, Washington is therefore suspending its trade sanctions against them.
Two-year period
This agreement is made in the wake of the agreement concluded on October 8 at the OECD, the Organization for Economic Co-operation and Development.
Signed by 136 countries, it guarantees the application of a minimum tax of 15% to multinational companies.
As soon as the OECD agreement enters into force, that is to say in two years, national taxes will cease.
Washington wanted this to be effective immediately, but the European countries preferred to maintain them.
They undertake to reimburse any excess taxes collected with the national tax over what the Gafa will pay under the OECD tax agreement.
► To read also: Presidency Biden: change of tone on the GAFA tax
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