Turkey Proposes 7.5% Digital Services Tax

Oct. 24, 2019, 1:55 PM

Turkey’s government has proposed a 7.5% tax on the revenue tech companies like U.S. companies Facebook Inc. and Alphabet Inc.’s Google generate in the country.

  • Chip Harter, deputy assistant secretary for international tax affairs at the Treasury Department, said Sept. 11 that the U.S. intended to take trade action against countries that enact taxes aimed at U.S. companies.
  • The tax will be applied to any company with 750 million euros ($834 million) of worldwide revenue and 20 million Turkish lire ($3.1 million) of digital revenue in Turkey.
  • The tax hits social media companies, online marketplaces, and digital intermediation platforms like Uber Inc. It will also affect businesses in areas like online advertising and in-game or online video advertising sales.

© 2019 Bloomberg L.P. All rights reserved. Used with permission.

To contact the reporter on this story: Hamza Ali in London at hali@bloombergtax.com

To contact the editors responsible for this story: Meg Shreve at mshreve@bloombergtax.com; Kathy Larsen at klarsen@bloombergtax.com

To read more articles log in. To learn more about a subscription click here.