Digital taxes adopted by India, Italy and Turkey in recent years have discriminated against US companies, a US spokesman said on Wednesday.
The USTR, which launched investigations into the three nations' digital service taxes last June, said it considered them inconsistent with international tax authorities, unreasonable and burdening / restricting US trade.
In its detailed reports, which were published by the agency, USTR examined how these digital taxes (or digital service taxes) affected companies such as AmazonThe Google, Facebook, the Airbnb and Twitter. The USTR said it conducted these investigations under section 301 of the 1974 U.S. Commercial Code.
India, which has become the largest market for Silicon Valley giants Google and Facebook, introduced digital service taxes in 2016 to target foreign Companies.
The USTR investigation found that New Delhi taxed "numerous categories of digital services that did not fall under the category of digital services taxes that have adopted worldwide "and that the total tax bill for US companies could exceed $ 30 million a year. The same issue exists with India which does not impose such taxes to local companies.
U.S. technology companies have in the past supported the terms of the Organization for Economic Co-operation and Development (OECD). However, the OECD, which is currently working on the technical details of agreements for more than 100 nations, does not expect to complete this project by mid-2021. Since the OECD agreements have not been implemented, several countries are moving forward with their own versions of the taxes.
Source of information: techcrunch.com