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Digital Taxes Won’t Get Break Under IRS Foreign Credit Rules (3)

Sept. 29, 2020, 7:04 PMUpdated: Sept. 29, 2020, 10:57 PM

Treasury took a firm stance in newly released proposed rules, saying companies subject to measures like digital services taxes abroad probably won’t be able to receive U.S. credits for those taxes.

It’s the latest in an ongoing debate over how the income of digital companies should be taxed around the world.

A growing number of countries are trying to capture more tax revenue from tech companies, saying the companies are able to derive value from users or consumers located there that isn’t recognized under current taxing norms. Tech companies say the measures subject them to double taxation and create a ...

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