Developing technology continues to change our lives and affect our world. This situation, which is also encountered in the business world, causes the number of companies operating internationally to increase day by day. Especially companies that offer digital services are increasing exponentially.
However, this also brings some problems. There are problems in many countries regarding taxation and income reporting. Our country, which recently wanted to find a solution, determined the Digital Service Tax rate as 7.5 percent. However, finally, Turkey and the USA agreed on the abolition of DHV.
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Digital Services Tax is lifted
explanation Ministry of Treasury and FinancePublished on the official website. According to this Turkey and USAAgreed on Turkey’s inclusion in the joint reconciliation text between the countries implementing the Digital Services Tax. The countries in question include Austria, France, England, Italy, Spain and the USA.
The agreement made especially the US companies relaxed about taxation. The United States, on the other hand, announced that it would remove the additional customs duties imposed on Turkey within the scope of the reconciliation. Thus, it is a matter of curiosity whether the constantly fluctuating dollar rate will settle down a bit. In the text on the website of the Ministry, the following statements were included:
In the statement dated October 8, which was agreed by 136 countries, including all G20 and OECD countries and approved at the last G20 summit, the following statements were made: 25 percent will be distributed to market countries, even if they do not have a physical presence in the relevant country.
Countries will also collect corporate taxes by applying their own tax rates to this income. According to the agreement reached, unilateral measures such as the digital services tax, which were imposed because corporate taxes could not be collected from these companies in the past, will also be abolished in return for this new taxation right that came with the international agreement. The timing of the abolition of unilateral measures and the transition period arrangements were left to the International Convention to be prepared and to the bilateral negotiations of the countries.
It is planned to prepare a multilateral agreement regarding the new system in 2022 and to enter into force in 2023. With this agreement, according to the OECD, the annual profits of the world’s largest and most profitable nearly 100 large global companies over $125 billion will be redistributed between countries, and these companies will pay corporate taxes in the countries where they generate income.
Turkey was at the top with tax rates
Turkey was not the only country to impose a digital service tax in recent years. However, he was at the top. The tax rate applied in France and Italy was 3 percent, the tax rate in England was determined as 2 percent, and the tax rates in other countries were between 1 percent and 3 percent. The most comprehensive tax was applied in our country. The digital service tax rate in Turkey was set at 7.5 percent.
So what do you think about this subject? Do you think the abolition of the Digital Services Tax will have positive results for our country? You can share your views with us in the comments section.