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United States Department of Treasury Announces Transitional Approach on Existing Digital Service Taxes Before Pillar 1

Oct. 26, 2021, 5:00 AM

The United States Department of Treasury Oct. 21 issued a joint statement with Austria, France, Italy, Spain, and the U.K., agreeing on a transitional approach to existing digital service taxes before the implementation of the OECD’s framework under the Pillar 1 international tax proposal. The transitional approach includes measures to: 1) terminate the proposed U.S. trade restrictions against Austria, France, Italy, Spain, and the U.K. for implementing the unilateral digital service tax; and 2) require Austria, France, Italy, Spain, and the U.K. to provide an interim tax credit in the first taxable period that a taxpayer that is part of ...