Tag Archives: Indian digital tax

US condemns digital tax Italy, India, Turkey, does not issue tariffs, Telecom News, ET Telecom | Instant News

Washington: The United States on Wednesday criticized the taxes imposed on technology companies by Italy, India and Turkey, but held back from hitting those countries with punitive tariffs.

That US Trade Representative (USTR) said the Digital Services Tax adopted by the three countries “discriminates against US companies, inconsistent with applicable principles international taxation, and burdens or restricts US trade. “

However, “USTR is not taking any specific action in light of the current findings, but will continue to evaluate all available options.”

The decision was taken on the same day that a 25 percent tariff on $ 1.3 billion worth of French goods, including cosmetics and handbags by high-profile brands, will go into effect in retaliation for tech firms targeting the country’s taxes.

France has yet to back down from its plans to tax online giants including Google, Amazon, Facebook and Apple.

France and other European countries imposed levies after intense public pressure to make US multinationals pay a larger share of their income in taxes in the countries in which they operate.


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USTR slammed India, Italy, Turkey on digital taxes but withheld tariffs | Instant News

WASHINGTON: The digital services tax adopted by India, Italy and Turkey discriminates against US companies and is inconsistent with international tax principles, the US trade representative office said on Wednesday, paving the way for potential retaliatory tariffs.
USTR, releasing the findings of its “Section 301” investigation on digital taxes, said it was not taking specific action at this time, but “will continue to evaluate all available options.”
The probe is among several USTR Section 301 investigations still open that could lead to tariffs before President Donald Trump leaves office or at the start of President-elect Joe Biden’s administration. Among them is a further investigation into France’s digital services tax.
The USTR has set a January 6 deadline for imposing a 25% tariff on French cosmetics, handbags and other imports worth an estimated $ 1.3 billion per year in retaliation for French digital taxes.
But it was unclear on Wednesday evening whether the collection of the duties would begin as scheduled. Spokesmen for USTR and Customs and Border Protection, the body responsible for tariff collection, did not respond to multiple requests for comment.
The USTR concluded that the digital taxes imposed by France, India, Italy and Turkey were heavily discriminatory US technology company, such as Google, Facebook, Apple, and Amazon.com.
In the latest report, it also said the Indian, Italian and Turkish taxes “make no sense” because they are “inconsistent with international taxation principles, including because of their application to income rather than income, extraterritorial application, and failure to provide tax certainty.”


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