Other nations will likely follow France with their own digital tax

New: Gift this subscriber-only story to your friends and family

On July 11, the French Senate passed a digital services tax, which would impose an entirely new tax on large multinationals that provide digital services to consumers or users in France. Digital services include everything from providing a platform for selling goods and services online to targeting advertising based on user data, and the tax applies to gross revenue from such services.

Many French politicians and media outlets have referred to this as a "Gafa tax", meaning that it is designed to apply primarily to companies such as Google, Apple, Facebook and Amazon.com - in other words, multinational tech companies based in the United States.

Already a subscriber? 

Read the full story and more at $9.90/month

Get exclusive reports and insights with more than 500 subscriber-only articles every month

Unlock these benefits

  • All subscriber-only content on ST app and straitstimes.com

  • Easy access any time via ST app on 1 mobile device

  • E-paper with 2-week archive so you won't miss out on content that matters to you

Join ST's Telegram channel and get the latest breaking news delivered to you.

A version of this article appeared in the print edition of The Straits Times on July 17, 2019, with the headline Other nations will likely follow France with their own digital tax. Subscribe