Ireland provides guidance on tax deductibility of Digital Services Taxes

On 5 August 2022, the Irish Revenue Commissioners (Irish Revenue) published guidance confirming that certain Digital Services Taxes (DSTs) incurred wholly and exclusively for the purposes of a trade are deductible in computing income of that trade for Irish corporation tax purposes.

The guidance applies to:

1. France’s Digital Services Tax
2. Italy’s Digital Services Tax
3. Turkey’s Digital Services Tax
4. United Kingdom’s Digital Services Tax
5. India’s Equalization Levy

Source EY