French Finance Committee Approves Draft Diverted Profits Tax

The Finance Committee of the French National Assembly has approved draft measures to introduce a diverted profits tax targeting profits connected to activities in France. The measure is based on the diverted profits tax introduced in the UK and includes a punitive tax rate of 5% in addition to the standard rate. In particular, it targets large foreign digital service providers, while exempting SMEs as defined in the EU Accounting Directive (Directive 2013/34/EU).

The draft measures will be s…