Dutch Knowledge Group Position on Deductibility of Digital Services Taxes

The Dutch tax authority's Corporate Income Tax and Profit Knowledge Group has issued its position on the deductibility of digital services taxes (DSTs) paid in a foreign country. The position addresses a foreign DST that is not deductible in the country that levied it and is structured similarly to the DST proposed in the EU in 2018 (EU DST). In its position, the Knowledge Group concluded that this specific type of DST does not qualify as a standard tax on profit. Therefore, it does not fall…