HomeFrance-StartupsWill France introduce its so-called 'Google tax' in 2011?

Will France introduce its so-called ‘Google tax’ in 2011?

Do you work in online advertising in the French market? Then this news could be relevant for you or your partners.

French President Sarközy has announced a 1% tax for revenues from internet advertising. Starting in 2011 this change will applied to all companies based in France. The country hopes it will bring in extra income between €10-€20 million in 2011.

Referred to as the so-called “Google tax”, this name comes from the envisaged purpose of the tax. Originally, it was directed against the US-based giant Google, as one of the largest advertisers on the web. That said, Google itself can not be asked to pay a special tax as the company has its headquarters in the United States. A conciliation committee in France still needs to agree to the proposal, but a rejection of the draft is unlikely.

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Thomas Ohr
Thomas Ohr
Thomas Ohr is the "Editor in Chief" of EU-Startups.com and started the blog in October 2010. He is excited about Europe's future, passionate about new business ideas and lives in Barcelona (Spain).

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