close
Share with your friends

OECD responds to U.S. Treasury’s letter on digital services tax

OECD responds to letter on digital services tax

The Secretary-General of the Organisation for Economic Cooperation and Development (OECD) today responded to a letter from the U.S. Treasury Secretary that had expressed the U.S. position concerning digital taxation.

1000

Related content

The U.S. Treasury Secretary’s letter (3 December 2019) stated that the United States opposes digital services taxes because of their “discriminatory” implications for U.S. businesses, and recommended that taxpayer concerns could be addressed and the goals of Pillar One could be substantially achieved by making Pillar One a safe-harbor regime. Read TaxNewsFlash

The OECD letter [PDF 261 KB] (dated 4 December 2019) agrees with the position of the United States “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.

The OECD letter further states:

Throughout the extensive consultation process, however, we had so far not come across the notion that Pillar 1 could be a safe-harbour regime. We raise this concern, as it may impact the ability of the 135 countries that are now participating in this process, to move forward within the tight deadlines we established….

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal