. Paris argued that digital firms were paying little to no tax; but the United States said the levy was particularly "burdensome" for American firms and Washington threatened to impose tariffs on French products.
Speaking to reporters at the World Economic Forum, Bruno Le Maire, the French finance minister, said his country had accepted a postponement of the payments to the end of 2020. "In exchange of this postponement … the U.S. accepts to suspend the sanctions against France," Le Maire said. However, this is not the end of their dispute. Both agreed to develop an international framework for digital taxation at the OECD level, but they disagree on how to shape it. The United States believes companies should be able to decide whether to reallocate a portion of their corporate profits, whereas France believes the system should be compulsory.
"We still need to have a clear understanding of what will be the working basis at the OECD. And we want this basis to be solid, credible and fair. An optional basis would not be credible," Le Maire said.
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