France to Raise Digital Services Tax from Three to Six Percent

France's parliament has approved a proposal to increase the digital services tax (DST) from three percent to six percent. The amendment also raises the revenue threshold for DST application from €750 million to €2 billion. The measure was passed by the lower house on 4 November 2025 but still requires Senate approval.

The government argues the higher rate and threshold aim to capture more revenue from large multinational digital platforms while avoiding disproportionate tax burdens. However, U.S. business groups, including the US Chamber of Commerce and the Information Technology Industry Council, label the DST as discriminatory and warn it could trigger retaliation.

If enacted, the higher DST could increase tax costs for U.S. tech firms operating in France and may affect bilateral trade relations. The proposal also comes as G7 nations agree to exempt U.S.