- Countries taxing US Tech businesses can face Trump -Toprats
- DSTs come under fire by Trump in new memorandum
- Only the United States can tax US tech businesses, Trump claims
US President Trump has referred to countries trying to tax us -based tech companies that may face extra tariffs.
During the recent US election, Meta called CEO Mark Zuckerberg Trump to prevent the European Union from charging fines on US companies for violating data protection and anti -rut regulations.
In a recent memorandum, the president said “My administration will not allow US companies and workers and US economic and national security interests to be compromised by one -sided, competitive policies and practices for foreign governments.”
Tax or Customs
Digital Service Taxes (DSTS) is one of the goals of Trump’s Memorandum, which the president has long been critical. DSTs were introduced to prevent tech companies from making money in a country and collecting the said profits in another country with more mild taxation.
Seam Registered States, Netflix -Subscriptions were paid to a Netflix unit registered in the Netherlands, despite the fact that users paid for their subscriptions from around the world, avoiding the taxation that would normally be paid for the financial activity generated in The Land of the User.
“American companies will no longer make unsuccessful foreign economies through blackmailing fines and taxes. All of these measures are violating US sovereignty and offshore US jobs, limiting US companies’ global competitiveness and increasing US operating costs while exposing our sensitive information to potentially hostile foreign regulators, ”Trump’s Memorandum said.
The Biden administration was also not a fan of DSTS, where Britain, Europe and India dropped some of the DST rules instead of facing 25% duties. DSTs were originally implemented as a temporary stop-gap alternative to the Organization for Economic Cooperation and Development’s (OECD) wider plan to reduce tax evasion of loopholes.
However, as many top US tech companies continue to avoid paying any taxes at all despite generating record surpluses, the OECD has been largely ineffective in its purpose and any country trying to charge taxes against US tech companies will stand to Trump’s anger.
