These ten trading partners are: Austria, Brazil, the Czech Republic, the European Union, India, Indonesia, Italy, Spain, Turkey, and the United Kingdom.
The US Trade Representative has announced that it is going to investigate digital services tax rules adopted or under consideration by ten trading partners.
These ten trading partners are: Austria, Brazil, the Czech Republic, the European Union, India, Indonesia, Italy, Spain, Turkey, and the United Kingdom.
The investigations will be conducted under Section 301 of Trade Act, 1974, which gives the US trade representative broad authority to investigate and respond to a foreign country’s action that may be unfair or discriminatory and negatively affect US Commerce.
Robert Lighthizer of the US Trade Representative said: “President Trump is concerned that many of our trading partners are adopting tax schemes designed to unfairly target our companies. We are prepared to take all appropriate action to defend our businesses and workers against any such discrimination.”
The US Trade Representative has invited comments on any issue covered by the investigations. In particular, it has invited comments with respect to:
- Concerns with one or more of the digital services tax rules adopted or under consideration by the jurisdictions covered in these investigations;
- Whether one or more of the covered digital services tax rules is unreasonable or discriminatory;
- The extent to which one or more of the covered digital services tax rules burdens or restricts US commerce;
- Whether one or more of the covered digital services tax rules is inconsistent with obligations under the WTO Agreement or any other international agreement; and
- The determinations required under section 304 of the Trade Act, including what action, if any, should be taken.
Comments must be submitted by July 15.
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