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 addi-
tion to the Committee on Foreign Affairs, for a period to be subsequently 
determined by the Speaker, in each case for consideration of such provi-
sions as fall within the jurisdiction of the committee concerned 
RESOLUTION 
Expressing strong opposition to the imposition of digital serv-
ices taxes by other countries that discriminate against 
United States companies. 
Whereas a digital services tax (DST) is a tax levied by a gov-
ernment 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 agree-
ments, a country’s taxing rights over multinational com-
panies’ profits are based on a physical presence in such 
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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 dis-
criminatory to United States-based companies, and that 
threatens the success of United States companies and 
workers and their competitiveness in international mar-
kets; 
Whereas many countries, including France, the United King-
dom, Spain, Italy, Portugal, India, and others have al-
ready implemented DSTs or similar taxes; 
Whereas, on July 10, 2019, the United States Trade Rep-
resentative initiated a section 301 investigation for 
France regarding their application of DSTs on American 
companies; 
Whereas, on June 2, 2020, the United States Trade Rep-
resentative (USTR) initiated section 301 investigations 
for Austria, India, Italy, Spain, Turkey, and the United 
Kingdom, regarding their application of DSTs on Amer-
ican companies; 
Whereas these investigations resulted in the findings that 
these DSTs are ‘‘unreasonable or discriminatory and bur-
dens or restricts U.S. commerce’’; 
Whereas, pursuant to that investigation, the USTR instituted 
additional duties on selected products from these coun-
tries; 
Whereas the Organisation for Economic Co-operation and 
Development (OECD) has hosted multilateral negotia-
tions with 142 countries to propose a framework for per-
manently removing and replacing DSTs and other harm-
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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 coordi-
nate 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 threat-
ened DSTs outside of the OECD framework, and poten-
tially in violation of existing trade commitments; 
Whereas some countries’ efforts have moved beyond DSTs to 
‘‘significant economic presence’’ policies intended to tar-
get, 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 dou-
ble 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 en-
gagement, withdrawal of trade preference programs, 
World Trade Organization dispute settlement, or impos-
ing 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 
Resolved, That the House of Representatives— 
(1) is committed to free and fair trade between 
the United States and other countries; 
(2) agrees with the findings of the reports 
issued by the United States Trade Representative 
that conclude that digital services taxes discriminate 
against United States companies and are in violation 
of existing international income tax and trade agree-
ments; 
(3) supports the Office of the United States 
Trade Representative resuming and expanding its 
investigations into digital services taxes that were 
suspended as a result of the October 2021 
Organisation for Economic Co-operation and Devel-
opment framework agreement; 
(4) calls on all other countries to cease and de-
sist from implementing any digital services tax, and 
to immediately stop unfairly targeting United States 
companies; 
(5) calls on the relevant United States Govern-
ment agencies to use all available methods and re-
sources to protect United States companies from the 
discriminatory effects of digital services taxes; and 
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(6) supports Congress looking at additional 
tools to address tax discrimination among United 
States trading partners, including tax counter-
measures. 
Æ 
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