France’s Digital Tax – level 1

13-12-2019 07:00

France and the US meet. They talk about large tech companies. The companies do business on the Internet.

They talk about how to tax the companies. France wants to tax them. The US says that only it can tax some of them. Many of the companies come from the US.

France says that these tech companies use global tax rules. They move their money to countries with lower taxes. Then they do not have to pay higher taxes in the countries where they make the money.

In the summer, France passes a digital tax. This is for tech companies that make money in France. However, a worldwide organization is working on this tax problem. It wants to help across the world so taxes are fair for everyone.

Difficult words: tax (to collect money for something a business or person does), global tax rule (a rule that a country has with other countries about taxes), tax (a fee a business or a person needs to pay when they make money in a country), digital (related to technology).

You can watch the original video in the Level 3 section.

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