Type:Notice
Citation:86 FR 6406
Reading Time:about 3 minutes
The Office of the United States Trade Representative (USTR) determined that the United Kingdom's Digital Services Tax (DST) is unreasonable and discriminatory towards U.S. digital companies. The tax targets certain online services and has revenue thresholds that disadvantage U.S. businesses, while also conflicting with international tax principles by applying to revenue instead of income. This tax is seen as an unreasonable burden on U.S. commerce, and further proceedings will decide what actions, if any, the U.S. will take in response.
Simple Explanation
The USA thinks a tax from the UK on internet companies is unfair and makes things harder for US businesses, so they are looking at how to handle it.