Wednesday 4 December 2019 6:48 pm

Governments commit to tech tax despite Trump threats

Governments around the world have reiterated their plans to implement a tax on tech giants, despite threats of retaliation by the US. 

Canada, Austria and Indonesia are among those to join the UK in reaffirming a commitment to a tax on US tech companies such as Amazon, Facebook and Google.

Read more: British tech tax to tie up Trump trade talks

The move comes despite a proposal by the US to punish France with 100 per cent tariffs on $2.4bn of exports such as cheese and Champagne, in response to the country’s digital services tax.


Prime Minister Boris Johnson has committed to a new two per cent tax on the revenues of search engines, social media platforms and online marketplaces. 

However, tech bosses yesterday warned that a digital services tax could derail future US-UK trade talks, after Trump yesterday said  “if anyone was going to tax American companies it will be me”.

“They’re starting to tax other people’s products… therefore we’re going to tax their products,” he told reporters in London in between Nato meetings. 

The Canadian and Austrian finance ministries have both committed to continuing with their tech tax policies, the Financial Times reported. 

Meanwhile, Indonesia today issued new rules to make overseas companies that have a presence in its booming online economy pay taxes.

Read more: France to tax Amazon and Facebook

The new regulation requires foreign firms that trade in goods or services electronically in the country to be considered as equal to having a physical presence in Indonesia and pay all taxes accordingly. 


“This was designed to create a fair, if we can’t have a level, playing field,” said Susiwijono Mugiharso, secretary of the economic affairs ministry.

Main image credit: Getty

Share