The move comes amid the historic agreement that was reached last month between 137 countries of the OECD-G20 inclusive framework, which represents nearly 95% of the world’s GDP, on a two-pillar package of reforms to the international tax framework to be implemented in 2023.
“These reforms will provide for a tax framework that is fairer, more stable, and better equipped to meet the needs of a 21st-century global economy,” the U.S. Treasury Department said in a statement.
“This compromise represents a pragmatic solution that helps ensure that countries can focus their collective efforts on the successful implementation of the OECD/G20 Inclusive Framework’s historic agreement on a new multilateral tax regime and allows for the termination of trade measures adopted in response to the Turkish Digital Services Tax,” it added.
The U.S. and Turkey on Oct. 8 joined 134 other members of the OECD-G20 inclusive framework, which includes Austria, France, Italy, Spain, and the U.K., in reaching a political agreement on the statement on a two-pillar solution to address the tax challenges arising from the digitalization of the economy.
Hurriyet Daily News