25 July 2019

French President signs bill on Digital Services Tax and partial freeze of corporate income tax rate decrease

On 24 July 2019, French President Emmanuel Macron signed the bill introducing the Digital Services Tax (DST)1 and the partial freeze of the corporate income tax rate decrease.2

The bill was published in the Journal Officiel on 25 July 2019, leading to the entry into force of the bill.

The DST consists of a 3% levy applied to revenue derived from specific digital activities by companies with a qualifying revenue of more than €750 million worldwide and €25 million in France.

For 2019, a unique advance payment will be due in November 2019.

Endnotes

1. See EY Global Tax Alerts, France’s Parliamentary Commission agrees on Digital Services Tax, dated 3 July 2019.

For additional information with respect to this Alert, please contact the following:

Ernst & Young Société d’Avocats, Paris
  • Jean-Pierre Lieb | jean.pierre.lieb@ey-avocats.com
  • Eric Verron | eric.verron@ey-avocats.com
  • Nicolas Genestier | nicolas.genestier@ey-avocats.com
  • Morgan Vail | morgan.vail@ey-avocats.com
  • Xavier Dange | xavier.dange@ey-avocats.com
Ernst & Young LLP (United States), French Tax Desk, New York
  • Frédéric Vallat | frederic.vallat@ey.com
  • Mathieu Pinon | mathieu.pinon1@ey.com
  • Rémi Volf | remi.volf@ey.com
Ernst & Young LLP (United States), Financial Services Desk, New York
  • Sarah Belin-Zerbib | sarah.belinzerbib@ey.com

ATTACHMENT

Document ID: 2019-5931