- The USTR extended a trade deal with Austria, France, Italy, Spain, and the UK regarding digital services taxes (DSTs) as part of negotiations for a global tax agreement known as Pillar One.
- The extension allows these countries to continue collecting DSTs until 30 June 2024, with the possibility of further extension.
- The agreement also addresses the creditable amount collected under DSTs versus what would be collected under Pillar One.
- However, doubts exist about the implementation of Pillar One due to the need for broad global consensus and sufficient support in the US Senate.
- Additionally, challenges with large developing countries and technical issues loom over the fate of Pillar One.
- The extension does not affect the expiration of a separate commitment made by other countries to a moratorium on new DSTs through 2024, pending the signing of a multilateral tax treaty.
Source Deloitte
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