Spotlight on - United States Concludes That Digital Service Taxes of India, Italy and Turkey Are Discriminatory
Insight from the IBFD Asia-Pacific Team
In light of the events in the United States on 6 January 2021, it was easy to overlook the recent announcement made by the Office of the US Trade Representative (USTR). The USTR issued a Press Release on 6 January 2021, which concluded that digital service taxes (DSTs) implemented by India, Italy and Turkey were discriminatory against US companies and contravened international taxation principles.
Although the USTR has stated that it is not taking any specific actions in connection with the findings at the moment, this is a development to keep an eye on. It is important because additional investigations are ongoing into the DSTs adopted or under consideration by the following jurisdictions: Austria, Brazil, Czech Republic, the European Union, Indonesia, Spain and the United Kingdom.