- Countries that tax US technology companies could face Trump rates
- The DSTS are attacked by Trump in a new memorandum
- Only the United States can tax the technology companies in the United States, Trump argues
The president of the United States, Trump alluded to countries trying to tax technology companies in the United States, could face additional tariffs.
In the period prior to the recent US elections, Meta Mark Zuckerberg CEO asked Trump to prevent the European Union from imposing fines on US companies for violating the privacy of data and antimonopoly regulations.
In a recent memorandum, the President declared: “My administration will not allow US companies and workers and American economic and national security interests to be committed by unilateral anti -competitive policies and practices of foreign governments.”
Taxes or tariffs
Digital services taxes (DSTA) are one of the objectives of Trump’s memorandum, of which the president has been critical for a long time. DSTS were introduced to prevent technology companies from obtaining profits in one country and collecting profits in another country with more indulgent taxes.
As The registration States, Netflix subscriptions were paid to a Netflix entity registered in the Netherlands, despite the fact that users pay for their subscriptions around the world, thus avoiding taxes that would generally be paid for the economic activity generated in the country of the user.
“American companies will no longer support foreign economies failed through fines and exorctive taxes. All these measures violate American sovereignty and American jobs abroad, limit the global competitiveness of US companies and increase US operational costs while exposing our confidential information to potentially hostile foreign regulators, “says Trump’s memorandum.
The Biden administration was not a fan of the DSTS, with the United Kingdom, Europe and India who abandoned some of the DST regulations instead of facing 25%tariffs. The DSTS were originally implemented as a temporary alternative to detention of the Organization for Economic Cooperation and the broader plan (OECD) to reduce fiscal avoidance gaps.
However, as many main American technological companies continue to avoid paying any tax despite generating record profits, the OECD has been largely ineffective in its purpose, and any country that tries to impose taxes against US technological companies will face Trump’s anger .
