US Treasury Secretary Steven Mnuchin today issued a statement condemning proposals being floated in the EU and elsewhere for special taxation of the digital economy.
Here it is in full:
“Treasury is working very closely with the OECD and our counterparts there to address issues of base erosion and fair taxation. We believe the issues are not unique to technology companies but also relate to other companies, particularly those with valuable intangibles. I have instructed our team to continue their efforts in the OECD so that we can make progress on these issues quickly. I highlight again our strong concern with countries’ consideration of a unilateral and unfair gross sales tax that targets our technology and internet companies. A tax should be based on income, not sales, and should not single out a specific industry for taxation under a different standard. We urge our partners to finish the OECD process with us rather than taking unilateral action in this area.”
Munchin’s statement is fully consistent with the US’s previously stated position on the matter, as reflected in a March OECD interim report on efforts to reach worldwide consensus on the taxation of the digital economy.
It also follows similar comments expressed earlier this month by Republican and Democrat members of the US Senate Finance Committee in a letter sent to European Commission President Jean-Claude Juncker and European Council President Donald Tusk.