Sign up for tax alert emails    GTNU homepage    Tax newsroom    Email document    Print document    Download document

November 23, 2021
2021-6243

Turkey announces Joint Statement with the United States on Unilateral Measures Compromise – Digital Services Tax

On 22 November 2021, the Turkish Ministry of Treasury and Finance announced a Joint Statement of Turkey and the United States (US) regarding a compromise on a transitional approach to existing unilateral measures during the interim period before Pillar One is in effect.

The Joint Statement covers the following:

  • On 8 October 2021, Turkey and the US joined 134 other members of the Organisation for Economic Co-operation and Development/G20 Inclusive Framework in reaching political agreement on the Statement on a Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalisation of the Economy.

  • On 21 October 2021, the US, Austria, France, Italy, Spain, and the United Kingdom reached a political compromise on a transitional approach to existing unilateral measures while implementing Pillar One (Unilateral Measures Compromise). The Unilateral Measures Compromise is reflected in the Joint Statement that was issued by those six countries on 21 October (21 October Joint Statement).

  • Turkey and the US have agreed that the same terms of the Unilateral Measures Compromise will apply between Turkey and the US with respect to Turkey’s Digital Service Tax (DST) and the US’ trade actions regarding the DST. Accordingly, the Unilateral Measures Compromise described in the 21 October Joint Statement is incorporated by reference into the Joint Statement between Turkey and the US.

  • Turkey and the US will remain in close contact to ensure that there is a common understanding of the respective commitments under this agreement and also will endeavor to resolve any further differences of views on this matter through constructive dialogue.

_________________________________________

For additional information with respect to this Alert, please contact the following:

Kuzey Yeminli Mali Müsavirlik A.S., Istanbul

 
 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 2024, Ernst & Young LLP.

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

 

"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

 

Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.

 


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or ey.com. Please refer to the privacy notice/policy on these sites for more information.


Yes, I accept         Find out more