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US Treasury opposes unilateral digital services tax measures

The Secretary-General of the OECD responded to a letter from the U.S. Treasury Secretary that had expressed the U.S. position concerning digital taxation.

The U.S. Treasury Secretary, Steven Mnuchin, in a letter to the Secretary-General of the OECD, wrote that the United States “firmly opposes digital services taxes” because of the “discriminatory impact” such taxes would have on U.S. businesses. The letter also outlines that the US “have serious concerns regarding potential mandatory departures from arm’s length transfer pricing and taxable nexus standards”

In his response the Secretary-General of the OECD, José Ángel Gurría, wrote that ”a global solution is needed to stop a proliferation of unilateral measures” and that the goal would be to arrive at an international tax system that avoids double taxation and taxes net income, and not gross income.