Following the latest news It has been found that the, French President Emmanuel Macron has announced that U.S. President Donald Trump the French President have agreed on a compromise om the controversial tax on technology giants. As per the latest developments, it is found that France will still tax big technology oriented companies, however, the French government has promised that it will remove the tax as soon as OECD devise a plan in which they properly tax tech companies in countries in which they operate.
In addition to thing, OECD have been working on a way to properly tax tech companies for some time now and according to recent developments it is believed that a plan addressing this issue will take form by early 2020. Moreover the French have also promised that they will pay back companies who would have paid before the OECD framework takes form. France have assured companies that any company paying the tax beforehand will be paid back in full.
President Macron stated that “There’s been a lot of anxiety because of misunderstandings on this French digital tax. We talked about it, and I think we have found a very good deal thanks to the work of ministers,” he followed this by saying that“On a bilateral basis, we have reached an agreement to fix our disagreements between us. We are going to work together to find a solution. When there’s an international taxation model, we will remove the tax — and everything that has been paid will be deducted from this international tax. We have found an agreement that is good for all parties involved. It can solve a lot of really negative issues and improve the international system.”
It should be remembered that back in July, Trump had been critical of what the French planned in a tweet, he said “France just put a digital tax on our great American technology companies. If anybody taxes them, it should be their home Country, the USA, We will announce a substantial reciprocal action on Macron’s foolishness shortly. I’ve always said American wine is better than French wine!”. Following those remarks made by the US Premiere, he further also said that if the French are looking to tax American technology companies then the US will tax French wine in a bid to retaliate against there new regulations. However, following the Group of Seven summit, did not confirm reports, about the agreement between the two countries.
But one can say that he did look particularly happy as a CNN reporter reports, that when the President was asked about a question about France’s tax on technology companies, Trump said: “I can confirm that the first lady loved your French wine. She loved your French wine. So thank you very much. That’s fine.”