Ireland extends Digital Services Tax deduction jurisdictions

Spain, Austria and Kenya added to list of countries whose DST’s may be deducted against Irish Corporation Tax

Ireland’s Revenue Commissionaires has added three additional states to the list of jurisdictions that Irish resident businesses may claim Digital Services Tax against relevant their Irish taxable income.

Check our DST country implementations tracker.

Country DST’s deductible against Irish DST

The complete list is now:

1. Austria
2. France
3. India (Equalisation Levy)
4. Italy
5. Kenya
6. Spain
7. Turkey
8. UK

Irish DST relief pending OECD Pillar1 settlement

The relief is available pending completion of the OECD-led global tax reforms. Under OECD Pillar 1 of these proposals, jurisdiction will be allowed to tax the digital services income of non-resident businesses made in their territories.  Digital services include:

• Advertising services
• Exchange of user data
• Digital intermediation services

This is separate from VAT on digital services.

Under the OECD agreement, 137 members of the Inclusive Framework joined the Statement on the Two-Pillar Solution to Address the tax challenges rising from the digitalisation of the Economy released in October 2021. The Multilateral Convention to implement Pillar One on track for delivery by mid-2023 (11/07/2022)

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Europe Digital Services Taxes (DST)