US urges shelving of France's digital taxes plan

WASHINGTON, Dec 4 (KUNA) -- Treasury Secretary Steven Mnuchin reiterated the US opposition to France's plan to tax US digital companies.
In a letter sent to the Organization for Economic Cooperation and Development, the US official warned that the (taxes) have a discriminatory impact on US-based businesses.
"We have serious concerns regarding potential mandatory departures from arm's-length transfer pricing and taxable nexus standards - longstanding pillars of the international tax system upon which the US taxpayers rely," he wrote.
"We urge all countries to suspend digital services tax initiatives, in order to allow to OECD to successfully reach a multilateral agreement." Last July, the French parliament approved a law imposing three percent tax on revenues US tech companies generate in France.
On Tuesday, President Donald Trump defied the French move, saying that the US companies are not going to be taxed by France. (end) asj.ibi