Notice of Determination Pursuant to Section 301: Turkey's Digital Services Tax, 2480 [2021-00364]
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Federal Register / Vol. 86, No. 7 / Tuesday, January 12, 2021 / Notices
effective date of 12:01 a.m. eastern
standard time on January 6, 2021. The
U.S. Trade Representative will continue
to monitor the developments in the
France DST investigation and the
additional DST investigations in
considering the trade action in this
investigation. If a further modification
to the action is appropriate, the U.S.
Trade Representative will consider the
comments and testimony previously
provided.
Joseph Barloon,
General Counsel, Office of the United States
Trade Representative.
[FR Doc. 2021–00425 Filed 1–11–21; 8:45 am]
BILLING CODE 3290–F1–P
OFFICE OF THE UNITED STATES
TRADE REPRESENTATIVE
Notice of Determination Pursuant to
Section 301: Turkey’s Digital Services
Tax
Office of the United States
Trade Representative (USTR).
ACTION: Notice.
AGENCY:
The U.S. Trade
Representative has determined that
Turkey’s Digital Services Tax (DST) is
unreasonable or discriminatory and
burdens or restricts U.S. commerce and
thus is actionable under Section 301.
FOR FURTHER INFORMATION CONTACT: For
questions concerning the investigation,
please contact Thomas Au or Patrick
Childress, Assistant General Counsels at
(202) 395–0380 and (202) 395–9531,
respectively, Robert Tanner, Director,
Services and Investment at (202) 395–
6125, or Michael Rogers, Director,
Europe and the Middle East at (202)
395–2684.
SUPPLEMENTARY INFORMATION:
SUMMARY:
khammond on DSKJM1Z7X2PROD with NOTICES
I. Turkey’s DST
Based on information obtained during
the investigation, USTR has prepared a
comprehensive report on Turkey’s DST
(Turkey DST Report). The Turkey
Report, which is posted on the USTR
website at https://ustr.gov/issue-areas/
enforcement/section-301-investigations/
section-301-digital-services-taxes,
includes a full description of Turkey’s
DST. To summarize, Turkey adopted the
operative form of its DST on December
7, 2019. The DST applies to companies
that, during the previous calendar year,
generated Ö750 million or more in
worldwide revenues and TRY 20
million or more in revenues deriving
from the provision of digital services in
Turkey. The tax applies as of March 1,
2020.
VerDate Sep<11>2014
17:09 Jan 11, 2021
Jkt 253001
II. Proceedings in the Investigation
On June 2, 2020, the U.S. Trade
Representative initiated an investigation
of Turkey’s DST pursuant to section
302(b)(1)(A) of the Trade Act of 1974, as
amended (Trade Act). 85 FR 34709 (June
5, 2020) (notice of initiation). The notice
of initiation solicited written comments
on, inter alia, the following aspects of
Turkey’s DST: discrimination against
U.S. companies and unreasonableness
as tax policy. With respect to
unreasonable tax policy, USTR solicited
comments on, inter alia, whether the
DST diverges from principles reflected
in the U.S. and international tax
systems, including extraterritorial
application and taxing revenue rather
than income.
Interested persons filed over 380
written submissions in response to the
notice of initiation. The public
submissions are available on
www.regulations.gov in docket number
USTR–2020–0022.
Under Section 303 of the Trade Act,
the U.S. Trade Representative requested
consultations with the Government of
Turkey regarding the issues involved in
the investigation. Consultations were
held on September 29, 2020.
As noted, based on information
obtained during the investigation, USTR
has prepared and published the Turkey
DST Report, which includes a
comprehensive discussion on whether
the acts, policies, and practices under
investigation are actionable under
Section 301(b) of the Trade Act. The
Turkey DST Report supports findings
that Turkey’s DST is unreasonable or
discriminatory and burdens or restricts
U.S. commerce.
III. Determination on the Act, Policy, or
Practice Under Investigation
Based on the information obtained
during the investigation, and taking
account of public comments and the
advice of the Section 301 Committee
and advisory committees, the U.S. Trade
Representative has made the following
determination under sections 301(b) and
304(a) of the Trade Act (19 U.S.C.
2411(b) and 2414(a)): The act, policy, or
practice covered in the investigation,
namely Turkey’s DST, is unreasonable
or discriminatory and burdens or
restricts U.S. commerce, and thus is
actionable under section 301(b) of the
Trade Act. In particular:
1. Turkey’s DST, by its structure and
operation, discriminates against U.S.
digital companies, including due to the
selection of covered services and the
revenue thresholds.
2. Turkey’s DST is unreasonable
because it is inconsistent with
PO 00000
Frm 00101
Fmt 4703
Sfmt 4703
principles of international taxation,
including due to its application to
revenue rather than income,
extraterritorial application, and failure
to provide tax certainty.
3. Turkey’s DST burdens or restricts
U.S. commerce.
IV. Further Proceedings
Sections 301(b) and 304(a)(1)(B) of the
Trade Act provides that if the U.S.
Trade Representative determines that an
act, policy, or practice of a foreign
country is unreasonable or
discriminatory and burdens or restricts
United States commerce, the U.S. Trade
Representative shall determine what
action, if any, to take under Section
301(b). These matters will be addressed
in subsequent proceedings under
Section 301.
Joseph Barloon,
General Counsel, Office of the United States
Trade Representative.
[FR Doc. 2021–00364 Filed 1–11–21; 8:45 am]
BILLING CODE 3290–F0–P
DEPARTMENT OF TRANSPORTATION
Federal Highway Administration
Notice of Final Federal Agency Actions
on Proposed Highway in California
Federal Highway
Administration (FHWA), Department of
Transportation (DOT).
ACTION: Notice of limitation on claims
for judicial review of actions by the
California Department of Transportation
(Caltrans).
AGENCY:
The FHWA, on behalf of
Caltrans, is issuing this notice to
announce actions taken by Caltrans that
are final. The actions relate to a
proposed highway project, the Santa
Maria River Bridge Replacement Project
on State Route 1 at postmile 0.0, in San
Luis Obispo County, and north of the
City of Guadalupe, in Santa Barbara
County, State of California. Those
actions grant licenses, permits, and
approvals for the project.
DATES: By this notice, the FHWA, on
behalf of Caltrans, is advising the public
of final agency actions subject to 23
U.S.C. 139(l)(1). A claim seeking
judicial review of the Federal agency
actions on the highway project will be
barred unless the claim is filed on or
before June 11, 2021. If the Federal law
that authorizes judicial review of a
claim provides a time period of less
than 150 days for filing such claim, then
that shorter time period still applies.
FOR FURTHER INFORMATION CONTACT: For
Caltrans: Matt Fowler, Branch Chief,
SUMMARY:
E:\FR\FM\12JAN1.SGM
12JAN1
Agencies
[Federal Register Volume 86, Number 7 (Tuesday, January 12, 2021)]
[Notices]
[Page 2480]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-00364]
-----------------------------------------------------------------------
OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
Notice of Determination Pursuant to Section 301: Turkey's Digital
Services Tax
AGENCY: Office of the United States Trade Representative (USTR).
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The U.S. Trade Representative has determined that Turkey's
Digital Services Tax (DST) is unreasonable or discriminatory and
burdens or restricts U.S. commerce and thus is actionable under Section
301.
FOR FURTHER INFORMATION CONTACT: For questions concerning the
investigation, please contact Thomas Au or Patrick Childress, Assistant
General Counsels at (202) 395-0380 and (202) 395-9531, respectively,
Robert Tanner, Director, Services and Investment at (202) 395-6125, or
Michael Rogers, Director, Europe and the Middle East at (202) 395-2684.
SUPPLEMENTARY INFORMATION:
I. Turkey's DST
Based on information obtained during the investigation, USTR has
prepared a comprehensive report on Turkey's DST (Turkey DST Report).
The Turkey Report, which is posted on the USTR website at https://ustr.gov/issue-areas/enforcement/section-301-investigations/section-301-digital-services-taxes, includes a full description of Turkey's
DST. To summarize, Turkey adopted the operative form of its DST on
December 7, 2019. The DST applies to companies that, during the
previous calendar year, generated [euro]750 million or more in
worldwide revenues and TRY 20 million or more in revenues deriving from
the provision of digital services in Turkey. The tax applies as of
March 1, 2020.
II. Proceedings in the Investigation
On June 2, 2020, the U.S. Trade Representative initiated an
investigation of Turkey's DST pursuant to section 302(b)(1)(A) of the
Trade Act of 1974, as amended (Trade Act). 85 FR 34709 (June 5, 2020)
(notice of initiation). The notice of initiation solicited written
comments on, inter alia, the following aspects of Turkey's DST:
discrimination against U.S. companies and unreasonableness as tax
policy. With respect to unreasonable tax policy, USTR solicited
comments on, inter alia, whether the DST diverges from principles
reflected in the U.S. and international tax systems, including
extraterritorial application and taxing revenue rather than income.
Interested persons filed over 380 written submissions in response
to the notice of initiation. The public submissions are available on
www.regulations.gov in docket number USTR-2020-0022.
Under Section 303 of the Trade Act, the U.S. Trade Representative
requested consultations with the Government of Turkey regarding the
issues involved in the investigation. Consultations were held on
September 29, 2020.
As noted, based on information obtained during the investigation,
USTR has prepared and published the Turkey DST Report, which includes a
comprehensive discussion on whether the acts, policies, and practices
under investigation are actionable under Section 301(b) of the Trade
Act. The Turkey DST Report supports findings that Turkey's DST is
unreasonable or discriminatory and burdens or restricts U.S. commerce.
III. Determination on the Act, Policy, or Practice Under Investigation
Based on the information obtained during the investigation, and
taking account of public comments and the advice of the Section 301
Committee and advisory committees, the U.S. Trade Representative has
made the following determination under sections 301(b) and 304(a) of
the Trade Act (19 U.S.C. 2411(b) and 2414(a)): The act, policy, or
practice covered in the investigation, namely Turkey's DST, is
unreasonable or discriminatory and burdens or restricts U.S. commerce,
and thus is actionable under section 301(b) of the Trade Act. In
particular:
1. Turkey's DST, by its structure and operation, discriminates
against U.S. digital companies, including due to the selection of
covered services and the revenue thresholds.
2. Turkey's DST is unreasonable because it is inconsistent with
principles of international taxation, including due to its application
to revenue rather than income, extraterritorial application, and
failure to provide tax certainty.
3. Turkey's DST burdens or restricts U.S. commerce.
IV. Further Proceedings
Sections 301(b) and 304(a)(1)(B) of the Trade Act provides that if
the U.S. Trade Representative determines that an act, policy, or
practice of a foreign country is unreasonable or discriminatory and
burdens or restricts United States commerce, the U.S. Trade
Representative shall determine what action, if any, to take under
Section 301(b). These matters will be addressed in subsequent
proceedings under Section 301.
Joseph Barloon,
General Counsel, Office of the United States Trade Representative.
[FR Doc. 2021-00364 Filed 1-11-21; 8:45 am]
BILLING CODE 3290-F0-P