April 03, 2019

WASHINGTON – Today, ITI, the global voice of the tech sector, commended the latest action by the U.S. government to curb unilateral efforts to enact a digital services tax. In a letter from the U.S. House Ways and Means Committee, led by Rep. Darin LaHood (R-Ill.), Members urge President Trump to “engage forcefully” on addressing concerns regarding France and other European nations’ digital services tax proposal, and encourage the European Union to direct this issue through the multilateral Organisation for Economic Co-operation and Development (OECD) process, already underway.

“The business community relies on a functioning and dependable international tax system that promotes investment and innovation,” said Jennifer McCloskey, ITI’s Vice President of Policy, Market Access. “Selective digital tax policies only serve to create fragmentation and uncertainty, and jeopardize the ability of businesses small and large to innovate. We commend the U.S. House of Representatives for its attention to this critical issue, and support the ongoing efforts by the U.S. Congress and Trump administration to urge the European Union to address these complex and far-reaching international tax policies through the multilateral OECD process.”

The letter comes as Austria becomes the latest country to introduce a stand-alone digital services tax proposal and as France signals it is prepared to move forward with a second measure, following the failure of its first proposal last year.

ITI continues to call for a multilateral approach when considering digital taxation. Earlier this year, ITI submitted comments to the OECD’s Addressing the Tax Challenges of the Digitalisation of the Economy workstream.

Public Policy Tags: Tax Policy