Digital Services Tax Deal Extended

The United States and five other countries have agreed to extend their political compromise on digital services taxation.

The extension means that the US Trade Representative’s Office will continue to hold off on Section 301 investigations of the digital services tax regimes of Austria, France, Italy, Spain and the United Kingdom.

The compromise is being extended through June 30, while multilateral negotiations at the G20/Organization for Economic Cooperation and Development continue, according to the joint statement.

The G20/OECD Inclusive Framework in December announced it expects finalization of the Pillar 1 multilateral convention by the end of March, with a view to holding a signing ceremony by the end of June.