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July 25, 2019
2019-1342

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.

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ENDNOTES

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

2 See EY Global Tax Alerts, French Parliament approves draft bill on partial freeze of corporate income tax rate decrease, dated 16 July 2019.

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CONTACTS

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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

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