The National Assembly’s Finance Committee is taking a hard line against tech giants, including Google, Amazon, Apple, and Microsoft. These companies will be taxed at a rate of 15%, up from 3% previously, if the finance bill is approved.
GAFA in the crosshairs of the Finance Committee
Where can France find the tens of billions of euros missing from its budget? Partly from American tech giants, according to the National Assembly’s Finance Committee. The committee has just approved a 15% tax targeting large companies based across the Atlantic.
The “GAFA tax” was already set at 3%, but the plan is to raise it significantly in order to tax advertising activities and revenue generated in France. Only companies with global revenue exceeding 2 billion euros are affected. This effectively excludes major French companies that generate hundreds of millions of euros in revenue but not enough to be subject to this tax.
In total, fewer than 30 companies are affected, but the list includes all the tech giants: Google, Amazon, Apple, Microsoft, and Meta. As a reminder, these companies had already balked when the 3% tax was first introduced, which was largely passed on to consumers.
A Response to Tariffs
For Denis Masséglia, a Renaissance party lawmaker who introduced a similar amendment, the tax serves to bring euros into the state coffers, but it is also a “reciprocity strategy” implemented in response to Donald Trump’s tariffs.
While the proposed Zuckman tax has enjoyed strong public support in France, this type of tax appears to be part of a broader trend. However, it has not yet been adopted: for that to happen, the 2026 Budget must pass through the National Assembly and the Senate.
However, the political situation—which has been particularly tense this fall—does not suggest that debates on this topic will be calm. The new Prime Minister aims to finalize the bill by December 2025, but the road ahead will be difficult.
