Since 1 January 2019, France has held the Presidency of the G7. A unique opportunity, according to the Minister of Economy and Finance, Bruno Le Maire, to affirm the French vision of capitalism for tomorrow, namely a capitalism that must reduce inequalities and not reinforce them.
“Participating in the construction of 21st century taxation” will be one of France's top priorities, the Minister told the press on Monday 21 January.
"Taxation makes it possible to finance public goods and to guarantee equality between citizens. This is not possible if multinationals do not pay taxes”, he explained.
Thus, France will continue its battle at G7 level to tax value where it is created. Without waiting for an agreement at EU level, the French government intends to introduce its own tax on digital services (see EUROPE 12154), Mr. Le Maire recalled. A specific draft law is expected to be presented to the Council of Ministers by the end of February.
The tax will be applied retroactively from 1 January 2019 and will affect all companies that offer digital services with a turnover of more than €750 million worldwide and €25 million in France. Its rate will be adjusted according to turnover, with a maximum of 5%.
Nevertheless, Bruno Le Maire remains convinced that an agreement at EU level is possible by March, on the basis of the very watered-down Franco-German proposal that would only apply to online advertising (see EUROPE 12152). All that remains, he said, is to convince four countries, namely Ireland, Denmark, Finland and Sweden, which have opposed the principle of a European tax from the outset.
France will also continue to support the proposal for a minimum corporate tax as part of its G7 Presidency, as a “powerful tool in the fight against tax evasion”, according to the Minister. The country is determined to make progress on this issue, alongside the United States, Germany and the United Kingdom.
Paris will also work towards common investment rules in developing countries. “There are situations of vassalisation of countries unable to repay aid or loans, particularly to China”, he explained. The aim will be to reduce the imbalance between countries that refrain from investing because they comply with the rules and those that do not comply with the same rules.
Aware of the need for faster decision-making on tax policies, the French Minister also supported the European Commission's proposal to move gradually from unanimity to qualified majority voting in the EU Council on tax matters (see EUROPE 12172).
“The unanimity rule is a permanent obstacle to decisions”,said Bruno Le Maire.
The meetings are set. G7 Finance Ministers will meet on 17 and 18 July, while the G7 Leaders' Summit will take place from 24 to 26 August 2019 in Biarritz. (Original version in French by Marion Fontana and Mathieu Bion)