United States and Turkey announce updated digital services tax agreement

The U.S. Treasury Department today announced that in light of the revised timeline for adoption and signature of the Pillar One multilateral convention (MLC), the United States and Turkey have decided to apply to their November 22, 2021 joint statement regarding their political agreement on transitioning from the existing Turkish digital services tax (DST) to Pillar One—which incorporated by reference the terms under the October 21, 2021 joint statement between the United States and Austria, France, Italy, Spain, and the United Kingdom regarding their political agreement to withdraw all unilateral measures concerning the imposition of DSTs once Pillar One takes effect—the same terms as those under that October 21, 2021 joint statement updated as of February 15, 2024 to extend the agreement from December 23, 2023, until June 30, 2024. Read TaxNewsFlash

As explained in the Treasury release, the updated November 22, 2021 joint statement fully incorporates the provisions of the October 21, 2021 joint statement and the changes to the terms of the October 21, 2021 joint statement under the February 15, 2024 update.