- Countries that tax American technological companies could face Trump prices
- DSTs are criticized by Trump in a new memorandum
- Only the United States can tax American technological companies, Trump says
US President Trump has alluded to countries trying to tax technological companies based in the United States could face additional prices.
In the perspective of the recent American elections, the meta-PDG Mark Zuckerberg called Trump to prevent the European Union from taking fines from American companies to violate data confidentiality and antitrust regulations.
In a recent memorandum, the president said: “My administration will not allow American companies and workers and American economic and national security to be compromised by unilateral policies and practices of foreign governments.”
Tax or price
Digital services taxes (DST) are one of the targets of Trump memorandum, the president of which has long been critical. The DSTs have been introduced to prevent technological companies from making profits in one country and the collection of profits in another country with more lenient taxation.
As The register States, Netflix subscriptions have been paid to a Netflix entity registered in the Netherlands, despite users who pay their subscriptions from around the world, thus dodging taxation which would generally be paid for economic activity generated in the user country .
“US companies will no longer support foreign economies failed by extortion fines and taxes. All these measures violate American sovereignty and offshore American jobs limit the global competitiveness of American companies and increase American operational costs while exposing our sensitive information to potentially hostile foreign regulators, “said Trump memorandum.
The Biden administration was not a fan of the DST, the United Kingdom, Europe and India abandoning part of the DST regulations rather than 25% of prices. The DSTs were initially implemented as a temporary alternative at a stop pace to the organization for economic cooperation and development (OECD) broader plan to reduce tax evasion gaps.
However, as many large American technological companies continue to avoid paying taxes despite the generation of record profits, the OECD has been largely ineffective in its objective, and any country attempting to tax against American technological companies will face to Trump’s anger.
