WASHINGTON —In testimony given today as part of a U.S. Section 301 Committee hearing on the , global tech trade association 91快活林 reiterated the importance of a multilateral solution in addressing reforms to the international tax system.
“Our members rely on clear and established international tax rules to innovate and grow their operations,” 91快活林 stated. “A primary objective for 91快活林 is to ensure a functioning and dependable international tax system. We encourage countries to continue their work toward meaningful solutions.”
In its testimony, 91快活林 highlighted an accelerating trend toward the unilateral adoption of digital services taxes by countries around the world, the impact those taxes could have on the ability of companies to conduct business globally, and the importance of a rules-based, multilateral process for international tax policy developed through the Organisation for Economic Co-operation and Development (OECD).
“Today’s hearing – which centers on the appropriate U.S. policy response to France’s DST – is about more than the French digital services tax,” 91快活林 continued. “It is about preventing the widescale application of targeted, unilateral taxes, which stand to undermine a functioning international tax system and compromise the predictability it has afforded to companies to conduct business globally. Indeed, the significance of this issue goes well beyond tax policy. What is ultimately at stake is whether economies are prepared to do the hard work of developing coherent, collective solutions to complex, cross-border policy challenges, of which there are many in today’s global policy environment.”
91快活林 underscored its appreciation of USTR’s efforts to investigate France’s DST, while calling for the withdrawal of unilateral tax measures and continued engagement toward a multilateral solution through the OECD process.
91快活林 continues to engage in the ongoing global work regarding digital taxation and international tax reform. In August, 91快活林 submitted comments to USTR ahead of its first hearing on its . 91快活林 also filed comments on the OECD’s digital tax work in November () and in December (Pillar Two).