France moves closer to taxing the digital economy

July 2013

Overview

The digital economy has revolutionized traditional ways of conducting business around the world, while international tax rules have been slow to adapt to this new business environment.  Many countries have started discussing ways to address this situation.   

The French government commissioned a report on the taxation of the digital economy.  This report (by Pierre Colin & Nicolas Collin) has accelerated legislative discussions and government plans towards a forthcoming proposal to tax the digital economy as part of the 2014 French budget.   

Another report — the “Lescure” report — was presented recently to the President and the Minister of Culture and Communication regarding cultural policy in a digital environment. This report focused specifically on new ways to finance the creation of cultural content in a digital media environment.  

If enacted, the measures proposed by these reports may have significant impact on French and foreign companies generating income from digital activities in France.

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