France expects to raise several billions from global minimum tax

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France expects to raise several billions from global minimum tax

PARIS, June 9 - France expects to raise several billions in revenues from a global minimum tax rate that is currently being negotiated internationally, said Finance Minister Bruno Le Maire on Wednesday.

On Saturday, Le Maire and his counterparts from the Group of Seven agreed to support a minimum rate of at least 15% in negotiations under way in the Organisation for Economic Cooperation and Development on rewriting the cross-border taxation between 139 countries.

Asked on BFM TV how much the minimum tax will produce in France, Le Maire said: It's still a bit difficult to assess, but it's several billion euros per annum.

A separate pillar of international talks is focused on how to share the right to tax the 100 big companies that's profits are considered outside of normal levels among different countries.

Le Maire said that, under this pillar, France could expect to see 500 million to 1 billion euros in extra tax revenue, while Paris’ existing digital services tax, which Paris has promised to repeal once there is an international deal, generates about 450 million euros per year.

Some European countries had concerns that Amazon may fall outside the proposals for taxing super-profits because its overall operating margin is below the qualifying threshold of 10%.

Officials close to the talks said on Tuesday that the G7 states had found a way to include Amazon by targeting its more profitable Cloud Computing unit, which Le Maire said he was in favour of.

I would like to dissect Amazon's activities so that what is highly profitable is subject to this digital taxation, le Maire said. Amazon has to pay this tax. What do people think about their life?

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