During the examination of the Budget proposals for 2026, on October 28, Members of Parliament gave the green light to the proposal to increase the Digital Services Tax from 2026. The digital services tax (DST), also known in France as the GAFAM tax, primarily targets international digital platforms.
The Members of Parliament voted to increase the tax from 3% to 6%, despite opposition from the Government, which feared possible retaliation from the US administration.
The initial proposal was to increase the DST from the current 3% to 15%. Still, given strong opposition from a few parties, a compromise was reached to lower the initial rate as a “protective” measure to reduce the possibility of repeal by the Trump administration.
Whether this adopted proposal will become a part of the Budget Law for 2026 remains to be seen.
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