Google, Amazon and Facebook now won’t pay 3% French tax under new deal

France and the US have reportedly come to an agreement regarding to controversial digital tax imposed on tech giants last month.

Google, Amazon and Facebook all testified in Washington last week arguing that France’s recently imposed three per cent tax unfairly targeted US companies, leading President Donald Trump to threaten to impose tariffs on the country.

President Emmanuel Macron is now understood to have reached a deal with the US president, which will see France eliminate the three per cent tax once a new international agreement on digital taxation is reached.

READ MORE: Amazon, Facebook and Google to join forces with Trump to fight French tech tax

Once the international agreement is in place, companies which have paid France’s tax will be reimbursed.

The tax requires tech companies with global revenues of over €750 million (£687 million) and digital sales of over €25 million (£22.9 million) in France to pay a three per cent tax on domestic revenues, and is expected to raise €500 million for France every year.

France imposed the tax after an EU-wide initiative to do so failed last year.

EU chief Donald Tusk said that the union would “respond in kind” if France was targeted by the US in response to its digital tax.

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