- Policymakers are debating international tax rules after a US agreement at the G7, which may lead to US anti-avoidance policies coexisting with a global minimum tax.
- The US approach to the Canadian Digital Services Tax raises questions about targeting other DSTs with trade measures.
- Foreign DSTs generate little revenue, mainly affect consumers, and invite trade threats. Countries should consider using value-added taxes for digital services.
- International tax and trade issues are interconnected, with opportunities to pressure jurisdictions with DSTs.
- Recent actions show aggressive US policy to achieve international tax and trade outcomes, with Section 899 targeting discriminatory policies like DSTs.
- The US government has opposed DSTs, with President Trump threatening trade actions against countries with DSTs.
- Recent revenue figures from major DSTs show varying amounts raised by different countries.
Source: taxfoundation.org
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
