With the new US administration comes the opportunity to build international consensus on the taxation of the digital economy. Prolonging national digital tax discussions risks driving international trade disputes
London, 10th February 2021, 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 impetus from the US, EU, and the UK to agree on a common approach to the taxation of the digital economy at the OECD.
The organisations are calling on the US, 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 of the letter represent nearly a thousand technology companies across the US, UK, and EU, start-up representatives from 33 countries, and a network of 70,000 software developers.
“The cross-border nature of digital products and services makes it obvious that regulatory proposals cannot emerge unilaterally,” stated Karina Stan, Director of EU Policy and Head of Brussels Office for the Developers Alliance. “Coherent internationally-agreed taxation policies would be an incentive for software developers to continue to grow their businesses. State-by-state regulation is the quickest way to kill the digital economy.”
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.
About The Developers Alliance
The Developers Alliance is the world’s leading advocate for software developers and the companies invested in their success. Alliance members include industry leaders in consumer, enterprise, industrial, and emerging software development, and a global network of more than 70,000 developers.