Turkey and the United States have made a joint announcement that the former has agreed a timeline for the withdrawal of its digital services tax.
The newly announced bilateral agreement follows the international agreement on October 8, 2021, among 136 territories party to the BEPS Inclusive Framework on a new, two-pillar international tax framework for large multinational companies, including new rules to share the profits of digital giants with market jurisdictions (“pillar one”) and a minimum 15 percent corporate tax rate (“pillar two”).
The agreement between Turkey and the United States mirrors an earlier “political compromise” struck between the US and five European states – Austria, France, Italy, Spain, and the United Kingdom. Under the agreements, the countries will replace their digital services taxes with the OECD’s new framework when it is introduced – expected from December 31, 2023.
Further, they agreed that … Read More »