The US government has announced that it has agreed with five European countries, including the United Kingdom and France, which have been in conflict over digital taxation, to withdraw the retaliatory tariffs that the US has been considering.
Digital taxation on giant IT companies is spreading, especially in Europe, where each country's own tax system is being introduced, but the U.S. government has opposed that it is unfairly targeting its own company called GAFA. While flickering retaliatory tariffs, we have called for the creation of international rules that take into account the intentions of the United States.
This month, the U.S. government agreed with the United Kingdom, France, Italy, Spain, and Austria on the 21st, following the agreement that the member countries of the OECD (Organization for Economic Co-operation and Development) will proceed with rule making toward 2023. They announced that they had agreed to resolve the conflict.
Specifically, the five countries will continue their current digital taxation for the time being, but will deduct overpaid taxes from American companies after new rules are set.
Instead, the United States has promised to withdraw the retaliatory tariffs it has been considering.
The Biden administration has once avoided aggravating the confrontation with the five countries that continued from the previous administration, but said that Turkey and India have not yet reached an agreement, and negotiations are expected to continue.