The American streaming giant Netflix has been the subject of a tax audit in France since 2022, relating to the 2019, 2020 and 2021 financial years of its tricolor subsidiary, according to information from Letter A, confirmed to AFP on Wednesday by a close source. the case.
“At the same time, we support a reform of the international tax system to give a clear framework to companies that operate in an increasingly digital world,” added the spokesman for the group that arrived in France in 2014.
Chargebacks
Until 2021, Netflix “minimized its taxation by declaring its turnover in France in the Netherlands”, while its clients contracted with a Dutch company, writes the letter A.
After the abandonment of this financial agreement in 2021, the turnover declared in France by Netflix jumped from 47.1 million euros in 2020 to 1.2 billion euros and then to “1.3 billion euros” in 2022, when the threshold was exceeded. ribbon of 10 million euros. subscribers were crossed.
“Legal tax optimization practice”
Looking ahead to the 2021 financial year, “tax officials intend to check if (…) Netflix has not continued to abusively minimize its profits,” explains Letter A.
He cites in particular the difference between the “microscopic operating margin”, less than 2%, generated in France by the platform in 2021, and that of its US parent company, of 20%, ensuring that “this difference will persist in 2022”. , a year in which the company “paid only 6.5 million euros in benefits”.
In case of abuse, Bercy could opt for a recovery, as has happened in recent years with other digital giants, including Google.
For its part, Netflix guarantees compliance with French regulations by respecting the investment obligations in creation, paying full VAT and contributing to the CNC up to 5.15% of its turnover.
With more than 238 million subscribers worldwide, Netflix had $8.2 billion in revenue in the second quarter of 2023. Contacted, the Directorate General of Public Finance (DGFiP) had no comment.
Source: BFM TV
