A “Made in France” tax for a European problem

France - Jun 20 2019
  • #esg

In a context of tax competition in Europe, the Internet giants are taking advantage of this situation to pay the least taxes on significant revenues. At European level, there is currently no effective solution. Legally, tax decisions are sovereign. The implementation of a GAFA tax (Google, Amazon, Facebook, Apple) is the subject of much opposition from some member. Some such as Germany are afraid of trade retaliation from the US. Others such as Luxembourg and Ireland have -at least partly- based their economic policies on the tax attractiveness of their territory. Hence, harmonising corporate tax in Europe is not an easy task, especially when it has been falling steadily since the 2000s (see chart).

Average corporate tax rate in Europe since 2008

There is a mark decrease due to fiscal competition

Possibly as a way to press for an EU-wide coordinated outcome, and pending other OECD initiatives for a consistent tax base globally, France has drafted a law for a tax on digital advertising and intermediation services. This tax would apply to companies with a turnover of more than €750 million worldwide and more than €25 million in France, i.e. 27 companies in all (including GAFAs). This 3% levy could bring in more than 400 million euros per year.

Is this unilateral decision the solution to the insufficient levy on corporates in Europe? While it could generate fiscal revenues, it may also entail higher prices for those services, and be a burden for consumers. This project is supported solely by France and thus has only a small impact at the European level. At the end of the day, it does not conclude on the real subject: how can we allow corporate (and other) tax cooperation in Europe? 

Dylan Alezra, Macro Analyst
Sources: Beyond Ratings, European Commission, OECD

Weekly digest publications:

Power for all, and all for one single European market

Analyst insight
Europe
Jun 20 2019
See publication

Prison Break

Weekly food for thought
Global
Jun 20 2019
See publication

Summer is coming…

Weekly food for thought
Global
Jun 20 2019
See publication

Our latest
publications

Title
Category
Tag
Country
Date
Analyst insight
#Biodiversity #Carbon/Climate Change #Geopolitics
2020-07-10
Analyst insight
#ESG
Global
2020-07-10
Analyst insight
#Carbon #ESG
Global
2020-07-10
Analyst insight
#ESG
Global
2020-07-10
Research note
#ESG
Global
2020-07-10
Weekly food for thought
#Carbon/Climate Change
Global
2020-07-10
Weekly food for thought
#ESG
Global
2020-07-10
Weekly food for thought
#ESG
France
2020-07-10
Analyst insight
#Credit Risk #ESG
Global
2020-07-10
Weekly food for thought
#Carbon/Climate Change #Environment
Global
2020-07-10
Weekly food for thought
#ESG
Global
2020-07-10
Weekly food for thought
#ESG
France
2020-07-10
Analyst insight
#Carbon
Europe
2020-07-10
Weekly food for thought
#Carbon
Global
2020-07-10
Weekly food for thought
#ESG
Global
2020-07-10
Weekly food for thought
#Credit Risk
United States
2020-07-10
Analyst insight
#Environment
Northern Area
2020-07-10
Weekly food for thought
#Carbon/Climate Change
Europe
2020-07-10
Weekly food for thought
#ESG
France
2020-07-10
Weekly food for thought
#Credit Risk
Peru
2020-07-10
Weekly food for thought
#Carbon #Carbon/Climate Change
World
2020-07-10
Weekly food for thought
#ESG
France
2020-07-10
Weekly food for thought
#Credit Risk #GDP
Europe
2020-07-10
Weekly food for thought
#Carbon/Climate Change
Global
2020-07-10
Weekly food for thought
#ESG
Global
2020-07-10
Weekly food for thought
#Credit Risk
France
2020-07-10
Analyst insight
#Credit Risk #France
Europe
2020-07-10
Weekly food for thought
#ESG
Global
2020-07-10
Weekly food for thought
#Carbon/Climate Change
Global
2020-07-10
Weekly food for thought
#ESG
Global
2020-07-10
Weekly food for thought
#GDP
Europe
2020-07-10
Analyst insight
#ESG
Global
2020-07-10
Weekly food for thought
#Carbon #Carbon/Climate Change
Global
2020-07-10
Weekly food for thought
#Carbon #ESG
France
2020-07-10
Weekly food for thought
#Credit Risk
Global
2020-07-10
Weekly food for thought
#Carbon #Carbon/Climate Change
Global
2020-07-10
Weekly food for thought
#ESG
Europe, USA
2020-07-10
Weekly food for thought
#GDP
France
2020-07-10
Analyst insight
#Environment
France
2020-07-10
Weekly food for thought
#Carbon #Carbon/Climate Change
Global
2020-07-10
Weekly food for thought
#Carbon/Climate Change #ESG
Global
2020-07-10
Weekly food for thought
#Credit Risk #GDP
China
2020-07-10
Weekly food for thought
#Carbon #Carbon/Climate Change
Global
2020-07-10
Weekly food for thought
#ESG
USA
2020-07-10
Weekly food for thought
#GDP
Global
2020-07-10
Analyst insight
#Credit Risk #Sovereign Debt
Global
2020-07-10
Weekly food for thought
#Carbon #Climate #IPCC #WMO
Global
2020-07-10
Weekly food for thought
#Carbon #Inequality #Paris Agreement
France
2020-07-10
Weekly food for thought
#GDP #Sovereign Debt
Italy
2020-07-10
Analyst insight
#Credit Risk #GDP #Geopolitics #Sovereign Debt
Global
2020-07-10
Weekly food for thought
#Environment
Global
2020-07-10
Weekly food for thought
#Carbon #Carbon/Climate Change #GDP
Global
2020-07-10
Weekly food for thought
#GDP
France
2020-07-10
Weekly food for thought
#Carbon #Carbon/Climate Change #Environment
Global
2020-07-10
Weekly food for thought
#Carbon #Carbon/Climate Change #Climate #Environment
Global
2020-07-10
Weekly food for thought
#Carbon #Carbon/Climate Change #Climate #Environment
Global
2020-07-10
Analyst insight
#GDP
Brasil
2020-07-10
Weekly food for thought
#Environment
Venezuela
2020-07-10
Weekly food for thought
#Environment #Natural Capital
Norway
2020-07-10
Analyst insight
#Carbon #Carbon/Climate Change #Climate
United Kingdom
2020-07-10
Weekly food for thought
#Agriculture #Biodiversity #Climate #GHG #Greenhouse gases
Global
2020-07-10
Weekly food for thought
#Biodiversity #Climate #Environment #ESG #IPCC #Oceans #SIDS
Global
2020-07-10
Weekly food for thought
#Credit Risk #GDP
France
2020-07-10
Weekly food for thought
#Carbon/Climate Change
Europe
2020-07-10
Weekly food for thought
#Carbon/Climate Change
France, Canada
2020-07-10
Weekly food for thought
#Credit Risk #GDP
Argentina
2020-07-10
Analyst insight
France, Egypt
2020-07-10
Weekly food for thought
#Carbon #Carbon/Climate Change #Climate
France
2020-07-10
Weekly food for thought
#GDP #Sovereign Debt
Germany
2020-07-10
Weekly food for thought
#Environment #ESG
Global
2020-07-10
Analyst insight
#GDP #Natural Capital #Sovereign Debt
South Africa, France
2020-07-10
Weekly food for thought
#Credit Risk #Sovereign Debt
United States
2020-07-10
Weekly food for thought
#Carbon/Climate Change
Global
2020-07-10
Weekly food for thought
#Carbon/Climate Change #Environment #ESG
Global
2020-07-10
Weekly food for thought
#Carbon/Climate Change #Climate
Global
2020-07-10
Weekly food for thought
#ESG
India
2020-07-10
Weekly food for thought
#Credit Risk #GDP
USA, Japan, European Union
2020-07-10
Weekly food for thought
#Carbon #Carbon/Climate Change #GDP #Paris Agreement #Sovereign Debt
Global
2020-07-10
Weekly food for thought
#Climate #Environment #Paris Agreement
Small Island Developing States, Global, Barbados, Fiji
2020-07-10
Weekly food for thought
#Credit Risk #GDP #Sovereign Debt
Venezuela
2020-07-10
Analyst insight
#Carbon #Carbon/Climate Change #Climate #Credit Risk
Global
2020-07-10
Analyst insight
Global
2020-07-10
Weekly food for thought
#Carbon #Carbon/Climate Change #Climate
Global
2020-07-10
Weekly food for thought
#Credit Risk #GDP
Global
2020-07-10
Analyst insight
#Biodiversity #Environment #Natural Capital
Brazil
2020-07-10
Weekly food for thought
#Credit Risk #Sovereign Debt
United States
2020-07-10
Weekly food for thought
#Carbon/Climate Change
Global
2020-07-10
Analyst insight
#Credit Risk #Sovereign Debt
United States
2020-07-10
Analyst insight
#Carbon/Climate Change #Credit Risk #ESG #Natural Capital
Global
2020-07-10
Analyst insight
#Carbon #Carbon/Climate Change
Europe
2020-07-10
Weekly food for thought
#Carbon #Carbon/Climate Change #Climate #Paris Agreement
France
2020-07-10
Weekly food for thought
#Credit Risk #Sovereign Debt
Europe
2020-07-10
Weekly food for thought
Global
2020-07-10
Analyst insight
Global
2020-07-10
Weekly food for thought
France
2020-07-10
Weekly food for thought
#Carbon/Climate Change #ESG
Global
2020-07-10
Weekly food for thought
Global
2020-07-10
Weekly food for thought
Global
2020-07-10
Weekly food for thought
Global
2020-07-10
Analyst insight
#Biodiversity #Climate #Environment #Natural Capital #Paris Agreement
Global
2020-07-10
Weekly food for thought
United States
2020-07-10
Weekly food for thought
Italy
2020-07-10
Weekly food for thought
Global
2020-07-10
Analyst insight
Middle East & North Africa
2020-07-10
Weekly food for thought
Global
2020-07-10
Weekly food for thought
Global
2020-07-10
Research note
#Carbon #Carbon/Climate Change #Climate #Paris Agreement
Global
2020-07-10
Weekly food for thought
Global
2020-07-10
Analyst insight
All
2020-07-10
Weekly food for thought
United States
2020-07-10
Weekly food for thought
All
2020-07-10
Weekly food for thought
#Carbon/Climate Change #Climate #Credit Risk
England
2020-07-10
Weekly food for thought
Global
2020-07-10
Weekly food for thought
Germany
2020-07-10
Analyst insight
Brazil
2020-07-10
Weekly food for thought
All
2020-07-10
Weekly food for thought
Italia
2020-07-10
Weekly food for thought
All
2020-07-10
Weekly food for thought
All
2020-07-10
Weekly food for thought
Canada
2020-07-10
Weekly food for thought
All
2020-07-10
Weekly food for thought
All
2020-07-10
Analyst insight
Sweden
2020-07-10
Weekly food for thought
All
2020-07-10
Weekly food for thought
All
2020-07-10
Weekly food for thought
Italia
2020-07-10
Analyst insight
All
2020-07-10
Weekly food for thought
USA
2020-07-10
Analyst insight
All
2020-07-10
Weekly food for thought
All
2020-07-10
Weekly food for thought
United Kingdom
2020-07-10
Weekly food for thought
United Kingdom
2020-07-10
Weekly food for thought
All
2020-07-10
Weekly food for thought
All
2020-07-10
Weekly food for thought
All
2020-07-10
Weekly food for thought
All
2020-07-10
Research note
All
2020-07-10
Weekly food for thought
All
2020-07-10
Weekly food for thought
All
2020-07-10
Weekly food for thought
Russia
2020-07-10
Analyst insight
Argentina
2020-07-10
Weekly food for thought
All
2020-07-10
Weekly food for thought
European Union
2020-07-10
Analyst insight
European Union
2020-07-10
Analyst insight
Greece
2020-07-10
Weekly food for thought
All
2020-07-10
Weekly food for thought
European Union
2020-07-10
Weekly food for thought
All
2020-07-10
Weekly food for thought
Cuba
2020-07-10
Weekly food for thought
All
2020-07-10
Analyst insight
Greece
2020-07-10
Weekly food for thought
European Union
2020-07-10
Weekly food for thought
French Guyana
2020-07-10
Weekly food for thought
#Sovereign Debt
Russia
2020-07-10
Weekly food for thought
All
2020-07-10
Weekly food for thought
All
2020-07-10
Weekly food for thought
Venezuela
2020-07-10
Analyst insight
All
2020-07-10
Weekly food for thought
United Kingdom
2020-07-10
Weekly food for thought
All
2020-07-10
Weekly food for thought
France
2020-07-10
Weekly food for thought
European Union
2020-07-10
Weekly food for thought
All
2020-07-10
Weekly food for thought
France
2020-07-10

Let's keep in touch!

The email is required
Invalid email
The firstname is required
Invalid firstname
The lastname is required
Invalid lastname

Register to our newsletter to be the first to hear about ...

By submitting this form, you consent to receiving email communications from FTSE Russell and the London Stock Exchange Group of companies (together, “LSEG”). LSEG will update your email preferences and hold your details in its contact database which can be accessed by LSEG group companies. For more information on how LSEG uses your data, see our Privacy Policy. For more information about LSEG group companies, see LSEG.com.

Get started

More investors are choosing Beyond Ratings' proprietary ESG-augmented financial metrics to gain a 360° view of company and country ESG performance.