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.
By the way: If you are interested in getting unlimited access to our full editorial archive, our startup database, and many other CLUB benefits, consider joining our EU-Startups CLUB.
