US Will Not Punish Countries for Digital Taxes for the Time Being

The United States is not currently punishing countries for special taxes for internet companies.

 

All possible additional trade restrictions for Great Britain, India, Turkey and three EU countries will be suspended for six months. In the meantime, the US government wants to solve a dispute with the countries about the digital tax.

This is a delicate issue in international negotiations on corporate taxation. According to Washington, the countries with their tax policies would discriminate against large American technology companies such as Apple, Amazon, Google and Facebook.

But the British government previously indicated that if the US wants support for a global minimum rate on corporate profits taxes, US tech companies must also make a fair contribution.

Earlier, the US also threatened to take action against the EU over plans for such taxes. But the Americans had already abandoned that in March. Trade tariffs have also been suspended for France.

Only EU member states Italy, Spain, and Austria had yet to reckon with US reprisals for their tax policies. The threat of new trade barriers at the US border had already been removed for Brazil, the Czech Republic and Indonesia. They ultimately did not pass or introduce any kind of digital tax laws.