WASHINGTON – Today, global tech trade association ITI responded to reports that the Office of the United States Trade Representative (USTR) plans to announce deferred remedies as part of its Section 301 investigation into France’s digital services tax (DST). From ITI Senior Director of Policy Sam Rizzo:
“While we hope to avoid any further escalation of tensions, today’s reporting follows USTR’s findings that the application of targeted, unilateral digital taxation measures—which continue to proliferate in number and expand in scope—deviates from established international tax norms, contributes to further fragmentation of our global tax system, and compromises predictability for businesses large and small. We continue to urge all governments participating in multilateral discussions to address the tax policy challenges arising from the digitalization of the global economy through a lasting, consensus-based solution.”
This reporting comes amid the pending Section 301 investigations opened by USTR into 10 other jurisdictions’ unilateral digital taxes and as we approach the one-year anniversary of the launch of the Section 301 investigation into France’s DST.