On July 10, 2019, the Office of the U.S. Trade Representative (USTR) announced the initiation of a Section 301 investigation into France’s Digital Services Tax (DST).
According to the USTR, “[t]he French DST bill would impose a 3% tax on total annual revenues generated by some companies from providing certain digital services to, or aimed at, French users.” The DST would apply to companies with a total annual revenue of at least €750 million globally and €25 million in France. The concern is that the structure of the DST would unfairly target U.S.-based technology companies.
The USTR will issue a Federal Register Notice to provide information on how to provide written comments and on a public hearing at a later date.
The USTR’s press release may be found here: