France: Will there be a Google tax in 2011?


Sarkozy wants 1% tax for revenues from Internet advertising. Starting in 2011 this would be applied to all companies based in France. The country hopes for extra income between 10 and 20 million € in 2011. The name “Google tax” comes from the envisaged purpose of the tax: Originally, it was directed against the US-based Google, as one of the largest advertisers on the web. But Google itself can not be asked for paying a special tax because 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.