An agreement between the United States and France will take some of the sting out of a French digital tax on wealthy tech companies like Apple, according to an announcement today that closed the G7 Summit.
In July, France enacted a 3% tax on revenues earned on digital services in the country. The tax hits any foreign company making more than $25 million in digital revenue in France. This prompted President Donald Trump to threaten the U.S. ally with tariffs on French wine.
The tax would directly impact American companies such as Google, Facebook, Microsoft and Amazon.
Under the agreement, companies hit with the tax could deduct the amount once a new international deal is reached for taxing internet companies, Reuters reported.
The French tax is retroactive to January 2019.
“We’ve done a lot of work on the bilateral basis, we have a deal to overcome the difficulties between us,” French President Emmanuel Macron said during a news conference today. Trump stood at Macron’s side during the press briefing.