Technology sector organisations techUK, the City of London Corporation, Allied for Start-ups, the Developers Alliance and the Computer and Communications Industry Association (CCIA) have today issued a joint letter calling for a new effort from the U.S., EU and UK to agree a common approach to the taxation of the digital economy at the OECD.
The organisations are calling on the U.S., EU and the UK to work together to bring the discussions at the OECD to a conclusion in 2021. This is vitally important as the proliferation of national digital taxes could lead to trade disputes threatening a renewed atmosphere of partnership.
The signatories to the letter represent nearly a thousand of technology companies across the U.S., UK and EU, start-up representatives from 33 countries and a network of 70,000 software developers.
The letter comes after the Biden Administration’s Treasury Secretary, Janet Yellen, indicated her support for an international solution at the OECD while the UK Chancellor Rishi Sunak hosted a recent meeting of G7 finance ministers and Central Bank leaders aiming to tackle global challenges, including a solution on tax challenges created by digitalisation on the economy.
The letter has been shared with the Finance Departments of the EU’s Member States, the European Commission, the UK Government and the U.S. Treasury.
The full letter can be found here.