Blog: Treasury Department details reforms regarding Turkish tax framework – Financial Regulation News – Financial Regulation News

The U.S. Treasury Department has reached an agreement with Turkey regarding transitioning from the existing Turkish Digital Services Tax to a new multilateral solution.

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The agreement was established in the wake of last month’s historic agreement reached between 137 countries of the OECD-G20 Inclusive Framework on a two Pillar package of reforms to the international tax framework to be implemented in 2023.

The reforms are slated to provide a more equitable and stable tax framework to meet the needs of a 21st-century global economy.

Additionally, the Treasury Department noted the agreement demonstrates the agency’s commitment to collaborate to reach consensus while delivering expansive multilateral reforms as a means of aiding national economies and public finances.

The agreement helps ensure countries can focus collective efforts on successful implementation of the OECD/G20 Inclusive Framework’s historic agreement on a new multilateral tax regime, officials said, allowing for termination of trade measures adopted in response to the Turkish Digital Services Tax.

According to the Treasury Department, the United States and Turkey will remain in close contact to ensure a common understanding of the respective commitments under the agreement and resolve any differences of views on the matter through constructive dialogue.

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