Aug 24, 2020
Facebook agrees to pay France €106m in back taxes
The social networking giant did not share details of the tax dispute, but France has been pushing tech companies to pay more tax inside the country where it is generated. The BBC understands that Facebook paid a tax rate in France of 38% in 2019, which is above the statutory income tax rate of 33.3%. In February, Facebook boss Mark Zuckerberg said he recognised the public's frustration over the amount of tax paid by tech giants. Last year, France announced a new digital services tax on multinational technology firms, but in January, the country said it would delay the tax until the end of 2020. The Digital Services Tax requires digital services operating in the UK to pay a 2% tax in connection to social media services, internet search engines and online marketplaces. In June, Chancellor Rishi Sunak and finance ministers in France, Italy and Spain signed a letter saying that tech giants, like Google, Amazon and Facebook, need "To pay their fair share of tax".
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