IV 

118TH CONGRESS 

1ST SESSION H. RES. 268 

Expressing strong opposition to the imposition of digital services taxes by 

other countries that discriminate against United States companies. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 30, 2023 

Mr. ESTES (for himself and Mr. KILDEE) submitted the following resolution; 

which was referred to the Committee on Ways and Means, and in addition to the Committee on Foreign Affairs, for a period to be subsequently 

determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

RESOLUTION 

Expressing strong opposition to the imposition of digital services taxes by other countries that discriminate against 

United States companies. 

Whereas a digital services tax (DST) is a tax levied by a government on a company that provides a digital service to 

a person or company of that country; 

Whereas companies that provide digital services need not be 

physically located in the countries where the people that 

use the company’s services reside; 

Whereas under international income tax and trade agreements, a country’s taxing rights over multinational companies’ profits are based on a physical presence in such 


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•HRES 268 IH 

country, rather than the mere sale or use of goods or 

services in such country; 

Whereas certain countries have developed DSTs that deviate 

from this international income tax system that are discriminatory to United States-based companies, and that 

threatens the success of United States companies and 

workers and their competitiveness in international markets; 

Whereas many countries, including France, the United Kingdom, Spain, Italy, Portugal, India, and others have already implemented DSTs or similar taxes; 

Whereas, on July 10, 2019, the United States Trade Representative initiated a section 301 investigation for 

France regarding their application of DSTs on American 

companies; 

Whereas, on June 2, 2020, the United States Trade Representative (USTR) initiated section 301 investigations 

for Austria, India, Italy, Spain, Turkey, and the United 

Kingdom, regarding their application of DSTs on American companies; 

Whereas these investigations resulted in the findings that 

these DSTs are ‘‘unreasonable or discriminatory and burdens or restricts U.S. commerce’’; 

Whereas, pursuant to that investigation, the USTR instituted 

additional duties on selected products from these countries; 

Whereas the Organisation for Economic Co-operation and 

Development (OECD) has hosted multilateral negotiations with 142 countries to propose a framework for permanently removing and replacing DSTs and other harmVerDate Sep 11 2014 00:13 Mar 31, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6300 E:\BILLS\HR268.IH HR268

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ful measures on a multilateral basis, and that the United 

States Treasury is participating in those negotiations; 

Whereas, on October 8, 2021, as a result of the OECD Pillar 

One negotiations, ‘‘all parties agreed to remove existing 

DSTs and other relevant similar measures, and to coordinate the withdrawal of these taxes, and on October 21, 

2021, the United States, France, Italy, Spain, and the 

United Kingdom on a transitional approach to those 

countries’ DSTs prior to entry into force of Pillar 1’’; 

Whereas pursuant to this framework, the USTR closed its 

section 301 investigations and removed additional duties 

imposed on these countries; 

Whereas DSTs continue to be collected from United States 

companies in certain jurisdictions; 

Whereas unfortunately, other United States trading partners, 

such as Colombia and Canada, have instituted or threatened DSTs outside of the OECD framework, and potentially in violation of existing trade commitments; 

Whereas some countries’ efforts have moved beyond DSTs to 

‘‘significant economic presence’’ policies intended to target, among other things, income from digital transactions 

and of nonresident digital economy businesses; 

Whereas these policies, including DSTs, will discriminate 

against United States companies and lead to unfair double taxation outside the bounds of current international 

tax standards; and 

Whereas the United States Government currently has many 

options to oppose DSTs, including intensive bilateral engagement, withdrawal of trade preference programs, 

World Trade Organization dispute settlement, or imposing duties, fees, import restrictions, or taxes on the goods 


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or services of countries that unfairly target United States 

companies: Now, therefore, be it 

1 Resolved, That the House of Representatives— 

2 (1) is committed to free and fair trade between 

3 the United States and other countries; 

4 (2) agrees with the findings of the reports 

5 issued by the United States Trade Representative 

6 that conclude that digital services taxes discriminate 

7 against United States companies and are in violation 

8 of existing international income tax and trade agree9 ments; 

10 (3) supports the Office of the United States 

11 Trade Representative resuming and expanding its 

12 investigations into digital services taxes that were 

13 suspended as a result of the October 2021 

14 Organisation for Economic Co-operation and Devel15 opment framework agreement; 

16 (4) calls on all other countries to cease and de17 sist from implementing any digital services tax, and 

18 to immediately stop unfairly targeting United States 

19 companies; 

20 (5) calls on the relevant United States Govern21 ment agencies to use all available methods and re22 sources to protect United States companies from the 

23 discriminatory effects of digital services taxes; and 


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1 (6) supports Congress looking at additional 

2 tools to address tax discrimination among United 

3 States trading partners, including tax counter4 measures. 

Æ 


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