WASHINGTON – Today, global tech trade association 91pro视频 issued the following statement in reaction to the joint announcement by the U.S., Austria, France, Italy, Spain, and the United Kingdom regarding a transitional agreement on existing digital services taxes.
“While today’s transitional agreement is a meaningful step, it is imperative that all governments urgently and fully withdraw their digital services tax measures,” said 91pro视频’s President and CEO Jason Oxman. “The elimination of such measures is essential to provide much-needed certainty and predictability for businesses, and to prevent further negative ramifications for all industries that do business across borders. As we review the terms of today’s interim agreement, we strongly urge the United States to retain its focus on securing the removal of all unilateral tax measures.”
The transitional political agreement announced today provides for the termination of proposed Section 301 duties and the crediting of U.S. companies’ digital services tax payments against future corporate income taxes accrued under Pillar One of the OECD/G20 Inclusive Framework’s Two-Pillar Approach to addressing tax challenges arising from the digitalization of the global economy. While taxes paid from January 1, 2022 forward will now count against future Amount A payments, the continued imposition of digital services taxes means that companies are still encountering measures that present trade barriers, give rise to double or multiple taxation, and apply on a gross-revenue basis.