November 30, 2021, 19:28

    U.S., Turkey agree on terms to end digital services tax, trade retaliation-Treasury

    U.S., Turkey agree on terms to end digital services tax, trade retaliation-Treasury

    WASHINGTON, Nov 22 (Reuters) – The United States and Turkey have agreed to terms for withdrawal of Turkey's digital services tax that largely targeted highly profitable U.S. technology giants and will transition to a new global taxation agreement in 2023, the Treasury said on Monday.

    The agreement will allow for the termination of U.S. retaliatory trade measures imposed against Turkey and will take on the same terms agreed by Washington in October with Austria, Britain, France, Germany and Italy, the Treasury said.

    A total of 136 countries agreed in principle to withdraw their digital services taxes as part of a sweeping global tax deal agreed on Oct. 8 to adopt a 15% global minimum corporate tax and grant some taxing rights on large profitable companies to market countries.

    The United States has not withdrawn its tariff threats against India over its digital services tax, aimed largely at U.S. technology companies such as Google (GOOGL.O), Facebook (FB.O) and (AMZN.O).

    Under the agreed withdrawal terms, Turkey and the European countries can continue to collect digital services taxes until the new regime is put in place, but any taxes collected after January 2022 taxes that exceed what companies would have to pay under the new rules would be credited against the firms' future tax liabilities in those countries.

    Register now for FREE unlimited access to reuters.comRegisterReporting by David Lawder; Editing by Aurora Ellis


    Related posts

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    We use cookies in order to give you the best possible experience on our website. By continuing to use this site, you agree to our use of cookies. You can find a detailed description in our Privacy Policy.
    Privacy Policy