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Digital Services Tax of International Trading Partners Investigated by USTR

The United States Trade Representative has announced investigations into the digital services tax (DST) of international trading partners. The representative announced the news at the beginning of the month.

Section 301 of the 1974 Trade Act

The USTR will conduct investigations under Section 301 of the 1974 Trade Act. Primarily, the provision authorizes the USTR to investigate foreign countries’ tax actions.

Accordingly, the investigations include DSTs adopted by Austria, Turkey, Italy, Indonesia, and the UK. Additionally, investigations will include DSTs under consideration by Brazil, the Czech Republic, the EU, and Spain.

“We are prepared to take all appropriate action to defend our businesses and workers against any such discrimination.”


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