- CEOs and CFOs of 15 European tech companies have written a letter to EU Finance Ministers urging them to extend the digital services tax (DST) standstill agreement until Pillar 1 is implemented.
- They argue that DSTs have created instability in the international tax system and disproportionately impact European technology companies, hindering their ability to compete globally.
- The letter highlights that DSTs are a blunt policy tool that tax gross revenues, not profits, and lead to unrelieved double, and even multi-layer, taxation.
- It also warns that the widespread implementation of DSTs, coupled with possible retaliatory actions, would create significant obstacles for new companies and those with low margins to grow to scale and attract capital investment for emerging technologies, hindering innovation which is a catalyst for future employment and economic growth.
- The CEOs and CFOs recommend governments agree to extend the DST standstill agreement beyond 31 December 2023, to provide legal and tax certainty until the implementation of Pillar One.
Source Orbitax
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