France’s DST “discriminates against US companies” — USTR

WASHINGTON, The US Trade Representative (USTR) has completed the first segment of a five-month investigation that concluded that France’s Digital Services Tax (DST) “discriminates against US companies. “(It) is inconsistent with prevailing principles of international tax policy, and is unusually burdensome for affected US companies,” the USTR said in a statement. It added that its investigation found that “the French DST discriminates against US digital companies, such as Google, Apple, Facebook, and Amazon.” It added that the French DST “is inconsistent with prevailing tax principles on account of its retroactivity, its application to revenue rather than income, its extraterritorial application, and its purpose of penalizing particular US technology companies.” The statement noted that it is issuing a Federal Register notice that “solicits comments from the public on USTR’s proposed action, which includes additional duties of up to 100 percent on certain French products,” and that the notice also seeks “comment on the option of imposing fees or restrictions on French services.” It indicated that the list of French products subject to potential duties “includes 63 tariff subheadings with an approximate trade value of USD 2.4 billion.”

Source: Kuwait News Agency