Internet Tax


French Plans On Internet Tax.  When France announced its plan to hold internet taxes, Google was one of the very first companies who have reacted negatively towards it. It has immediately stated plans of eliminating references towards French press websites as a threat against it.


The “Lex Google” Tax Defined


“Lex Google” tax is a proposed approach first heard in Germany to help gather taxes from companies that uses search engines that indirectly uses the work of the French media.

However, this bill is also yet to be approved by the German Parliament. If the same were to be practiced and implemented by the French Government, then the Government would then receive payment every time an article is accessed through the Google link posted on their site.

Upon hearing news of the above-mentioned plans, Google boldly stated that it would remove French newspaper websites in their listings. Furthermore, it has specified that the move would not be profitable in the long run because it will stifle innovation and limit access to information. Nevertheless, the team handling this matter is still evaluating the details of the proposal.

Additional Internet Tax Proposals


Aside from this, France has also mentioned the possibility of imposing tax on online publicity, as the current administration has discovered that the giant company derives most of its income (90%) from online advertising, which it believes should be given enough share of the profit.


The proposals submitted by finance inspector Nicholas Colin and French State Councilor Pierre Collin are currently being reviewed by French Budget Minister Jerome Cahuzac together with his French Junior Minister in charge with digital economy Fleur Pellerin.


The two have previously announced of its plans to investigate the current taxation of the digital economy in France, hand-in-hand with French Finance Minister Pierre Moscovici and Arnaud Monteburg; and these so-called “expert team” is evaluating the best tax schemes that would be favorable to both parties.


The team is aware that the French tax system have not yet fully adapted itself to the rapid development happening in digital technology and e-commerce, but with their mind focused and committed to maintain the competitiveness of France in the field of digital industry; the Government is optimistic it will soon implement rules that will not only be attractive to investors but for the Government itself.


The group is expected to submit their final proposal on the matter in the end of January as it lists an inventory of various tax rates implemented in other countries. Until then, the public awaits the revisions and overhaul it will recommend.