U.S. and Turkey Extend Compromise Agreement on Digital Services Tax

The U.S. Department of the Treasury has announced the extension of the compromise agreement with Turkey on a transition from Turkey's existing Digital Services Tax (DST) to the new multilateral solution agreed to under Pillar 1 of the OECD's two-pillar. First agreed to in November 2021, the agreement essentially provides that any DST liability that U.S. companies accrue during an interim period will be creditable against future income taxes accrued under Pillar 1, to the extent the DST liabi…