Austria, France, Italy, Spain, the United Kingdom and the United States on 21 October issued a joint statement on a compromise reached regarding digital services taxes (DSTs) and related unilateral measures. It follows the OECD Inclusive Framework (IF) statement of 8 October which contained details on unwinding existing DSTs and an agreement not to introduce further unilateral measures in the lead-up to the implementation of Pillar One. Under the joint statement, Austria, France, Italy, Spain, and the United Kingdom undertake to withdraw their DST rules for all companies once Pillar One takes effect. The same countries also agreed that DST liabilities accrued in their territories in the period beginning on 1 January 2022 and ending on the earlier of the date the multilateral convention (MLC) implementing Pillar One comes into force, or 31 December 2023 (the Interim Period) would be
credited against the tax liability arising from the introduction of Amount A under Pillar One.
In return, the United States agrees to terminate proposed trade actions, including for periods before 8 October, and not to impose any new trade actions, until the end of the Interim Period with respect to the existing DSTs imposed by the countries participating in the joint statement.
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