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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.

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

Kuzey Yeminli Mali Müsavirlik A.S., Istanbul

 
 

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