Spread of Digital Taxes Spurred Treasury Stance on Credits

Treasury is taking a firm stance that measures like digital taxes can’t earn companies foreign tax credits, as it sees more countries implementing such measures, an agency official said.

“This is something that we have been thinking about for a long time, as the Treasury have started to see these novel extraterritorial taxes that we view as inconsistent with international norms,” said Jason Yen, an attorney-adviser at Treasury’s Office of Tax Policy.

Measures like digital taxes are no longer “speculative,” but by now have been adopted and implemented in many places, he said Wednesday during a virtual conference hosted ...