US Trade Representative has published findings on digital service tax in India, Italy, and Turkey calling it discriminatory and burdensome.
The US Trade Representative (USTR) has found that the digital service tax (DST) adopted by India, Italy, and Turkey discriminates against US companies.
The findings were issued under Section 301 of the Trade Act of 1974. The findings on each of the DSTs are supported by comprehensive reports, which have been published on USTR’s website.
The US Trade Representative found that the tax is inconsistent with prevailing principles of international taxation, and burden or restricts US commerce.
The USTR said that is not taking any specific actions in connection with the findings at this time but will continue to evaluate all available options.
The Section 301 investigations of the DSTs adopted by India, Italy, and Turkey were initiated in June 2020, along with investigations of DSTs adopted or under consideration by Austria, Brazil, the Czech Republic, the European Union, Indonesia, Spain, and the UK.
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable at editor@transferpricingnews.com