This latest draft includes a provision specifying the localization criterion but its main features remain similar to the version submitted by the Government.1 The Government will have to provide Parliament with annual reports on the efficiency and use of the tax as well as on the state of the Organisation of Economic Co-operation and Development (OECD) and EU negotiations on digital taxation.
The National Assembly is now expected to vote on the tax on 4 July and the Senate on 11 July. French President Emmanuel Macron will then have 15 days to sign the bill into law, after the vote of both houses, unless the bill is deferred to the Constitutional Court.
It is important to note that with respect to calendar year 2019, a unique advance payment of the tax will be required in November 2019, meaning that companies must now assess both their computations and their filing requirements, once the bill is enacted.
Source EY
