User:Aravind.9411/Googletax

French government will introduce new online advertising tax known " Google tax" on online advertisements. The French parliament has decided to implement this new tax effective Jan 1, 2011. The tax on companies based in France would be amount to one per cent of the net amount spent on online advertising.

The measure was dubbed "Google tax" because it was originally conceived as a direct tax on the search engine and its competitors.

The parliamentary commission has for some time been working on a deal for the 2011 national budget, which has already been approved by the two houses of parliament.

A compromise was reached after considerable changes to the bill, which still has to be formally approved. It appears unlikely that the draft legislation will be overturned.

At the beginning of the year, President Nicolas Sarkozy called for additional tax on Google and its competitors.