U.S. Trade Representative Katherine Tai told her Turkish counterpart Mehmet Mus, that Ankara must remove individual digital services taxes following a broader multilateral agreement that was reached in talks led by the OECD.
Among a range of issues that was discussed between the two, improving access for US companies in Turkey took centerstage during a virtual meeting, said Tai’s office in a statement.
“Ambassador Tai stated that the United States views as critical the removal of individual DSTs in connection with the Organization for Economic Co-operation and Development (OECD) and G20 processes” said Tai’s office.
Earlier this summer, more than 130 OECD members agreed to work out new rules on where companies are taxed, to adopt a tax rate of at least 15%, and to drop national digital services taxes in favor of the new taxing rights.
G20 leaders are trying to finalize the deal by an Oct. 28-29 summit in Rome.
In June, although the UTSR’s office had announced 25% tariffs on over $2 billion worth of imports from six countries over their digital services taxes – including Turkey, it immediately suspended the duties to allow time for international tax negotiations to continue.
During their virtual meeting, Tai and Mus also discussed tackling challenges posed by non-market economies, with a particular focus on excess capacity, and efforts to reform the World Trade Organization, said the USTR.