The French Parliament on July 11 passed a tax on digital services by large internet and technology providers and partially postponed the corporate income tax rate reduction initially intended to apply as of January 1, 2019. Publication of the law in the Official French legal Gazette occurred on July 25, 2019.
The new 3% digital tax applies to companies providing certain digital services in France with global annual revenue in excess of EUR 750M and revenue in France exceeding EUR 25M. The tax is based on the amount, excluding VAT, that the taxpayer collects as consideration for taxable services provided in France as of January 1, 2019.
The law also includes a provision postponing the decrease of the corporate income tax rate from 33-1/3% to 31% for companies or tax groups with global revenue in excess of EUR 250M.