Background on Section 301 Digital Service Taxes

In 2020, the United States Trade Representative (“USTR”) initiated Section 301 investigations with respect to certain Digital Service Taxes (“DSTs”) being adopted or under consideration by a number of countries. DSTs are taxes on revenues that certain companies generate from providing certain digital services to users in those jurisdictions. According to USTR, available evidence suggests that DSTs are expected to target large, U.S.-based technology companies.

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