November 24, 2021
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 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.
For additional information with respect to this Alert, please contact the following:
Kuzey Yeminli Mali Müsavirlik A.S., Istanbul