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Tax committee leaders express support for OECD efforts, digital services taxes

Tax committee leaders express support for OECD efforts

The chairmen and ranking members of the tax-writing committees of the U.S. Congress today released a statement expressing their support for the United States’ participation in ongoing OECD negotiations with regard to digital services taxes.

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The statement—released by the chairmen and ranking members of the U.S. Senate Finance Committee and House Ways and Means Committee—provides:

The tax challenges that have arisen due to digitalization of the economy affect businesses headquartered all over the world, and solutions to these challenges are best negotiated multilaterally. We are supportive of the United States participating in the ongoing OECD negotiations on these solutions. We call on other countries to focus on and engage productively in the OECD dialogue in order to reach measured and comprehensive solutions, and abandon unilateral measures. Even on an interim basis, unilateral actions, such as digital services taxes proposed by some countries, can adversely affect U.S. businesses and have negative economic and diplomatic effects.

We look forward to engaging with the Treasury Department throughout this process and evaluating the outcome of the OECD’s work and its impact on U.S. taxpayers and the U.S. treasury. (emphasis added)

The U.S. statement further notes that under the OECD/G-20 Inclusive Framework on base erosion and profit shifting (BEPS), over 125 countries are currently negotiating solutions to address the tax challenges of the digitalization of the economy. 

The statement from the leaders of the U.S. congressional tax-writing committees observes that the French National Assembly passed a unilateral digital services tax that would “disproportionately affect U.S. technology companies.” That legislation is expected to be considered by the French Senate soon. Read TaxNewsFlash

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