US postpones retaliatory duties to 6 countries regarding digital taxes – 06/02/2021

The US government has decided to suspend tariffs on Austria, India, Italy, Spain, Turkey and the United Kingdom for 180 days, in response to taxes on US digital services applied by those countries. The goal is to save time for negotiations on a global digital tax agreement within the framework of the G-20 and the Organization for Economic Co-operation and Development (OECD).

In a statement released on Wednesday, US Trade Representative Catherine Tay said an investigation by the agency concluded that tariffs should be applied to some goods coming from these countries. However, the commitments will be temporarily deferred while the intentional community discusses the matter.

“Today’s actions provide time for these negotiations to continue to progress, while reserving the option to impose Article 301 tariffs if necessary in the future,” he said, referring to legislation on which the government would impose such retaliatory measures. According to her, the country remains committed to a multilateral solution.

At least 10 jurisdictions have been subject to US investigations over the past year into the tax practices of US technology companies. Brazil was included in the list, but investigations around the country were closed without any recommendation for punishment.