Joint statement from Turkey and the United States, regarding a compromise on a transitional approach to existing uniliteral measures during the interim period before Pillar 1 is in effect was published by the Ministry of Treasury and Finance of the Republic of Turkey on 22nd November 2021.
According to the relevant statement, on 8th October 2021, Turkey and the USA, together with 134 other countries with the OECD/G20 Inclusive Framework, joined the political consensus on the Statement on a Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalisation of Economy
Turkey and the United States have agreed that the same terms that apply under the Unilateral Measures Compromise shall apply as between Turkey and the United States with respect to Turkey’s Digital Service Tax. Accordingly, the Unilateral Measures Compromise is incorporated by reference into this joint statement between Turkey and the United States. The Framework of the Unilateral Measures Compromise is examined in three main points. To summarize briefly; each country agrees to provide a credit (“Interim Credit”) equal to the Credit Amount ( the amount by which taxes, which were accrued during the Interim Period with respect to Unilateral Measures enacted before October 8, 2021, exceed the Interim Pillar 1 Amount). United States will terminate trade actions proposed under Section 301 and commit not to impose further trade actions with respect to the existing Digital Services Taxes imposed by the United Kingdom, Austria, France, Italy, Spain or during the Interim Period (The period beginning on January 1, 2022, and ending on the earlier of the date the Pillar 1 multilateral convention comes into force or December 31, 2023).The parties will meet regularly to discuss progress implementing Pillar 1 and any implications that may have for the appropriate application of the agreement.
Turkey and the United States will maintain regular communications so that both parties have a common understanding of their obligations under the agreement. It is aimed to resolve possible differences of opinion through constructive dialogue.
Statement on a Two-Pillar Solution to Adress the Tax Challenges Arising from the Digitalisation of Economy : https://www.oecd.org/tax/beps/statement-on-a-two-pillar-solution-to-address-the-tax-challenges-arising-from-the-digitalisation-of-the-economy-october-2021.pdf
Unilateral Measures Agreement : https://home.treasury.gov/news/press-releases/jy0419
Relevant Announcement : https://www.hmb.gov.tr/duyuru/mevcut-tek-tarafli-onlemlerle-ilgili-olarak-1-sutunun-yururluge-girisi-oncesi-ara-donemdeki-gecis-yaklasimina-dair-uzlasma-hakkinda-turkiye-ve-amerika-birlesik-devletlerinin-ortak-b
NAZALI TAX & LEGAL