US President Donald Trump ordered an investigation into Tech Tax being imposed, in the reality of Donald Trump, unfairly on US firms according to an article on CNBC, attributed to Reuters. Now we know that the US President Trump and French President Macron have seen relations turn frosty in the past 12 months, with tweets and comments to the press that have been less than flattering.
This new tax, called a digital tax or tech tax will be imposed on a wide range of firms with offices in France but the US tech firms seem to be, according the White House, high on the list of targets for the French tax officials. US Trade Representative Robert Lighthizer will conduct a “Section 301” investigation to determine if there are unfair practices against US firms.
Our Views: The US, China, Japan, and the European Union will be managing these cross border tax issues as well as all trade treaties in the upcoming 5 years. Wth the US and the European Union locked in what seems to be mini-trade war. French Finance Minster Bruno Le Maire said in March that a 3% tax on French revenue of large internet companies could yield 500 million Euros ($563 million) a year.