REPUBLIC OF TURKEY MINISTRY OF TREASURY AND FINANCE NEWSLETTER-JOINT STATEMENT FROM TURKEY AND THE UNITED STATES REGARDING A COMPROMISE ON A TRANSITIONAL APPROACH TO EXISTING UNILATERAL MEASURES DURING THE INTERIM PERIOD BEFORE PILLAR 1 IS IN EFFECT

1-On October 8, 2021, Turkey and the United States joined 134 other members of the OECD/G20 Inclusive Framework (including Austria, France, Italy, Spain, and the United Kingdom) in reaching political agreement on the Statement on a Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalisation of the Economy.

2-On October 21, 2021, the United States, Austria, France, Italy, Spain, and the United Kingdom reached a political compromise on a transitional approach to existing Unilateral Measures while implementing Pillar 1 (“Unilateral Measures Compromise”). The Unilateral Measures Compromise is reflected in the joint statement that was issued by those six countries on that date (“October 21 Joint Statement”).

3-Turkey and the United States have agreed that the same terms that apply under the Unilateral Measures Compromise shall apply as between Turkey and the United States with respect to Turkey’s Digital Service Tax and the United States’ trade actions regarding the Digital Service Tax. Accordingly, the Unilateral Measures Compromise described in the October 21 Joint Statement is incorporated by reference into this joint statement between Turkey and the United States.

4-Turkey and the United States will remain in close contact to ensure that there is a common understanding of the respective commitments under this agreement and endeavor to resolve any further differences of views on this matter through constructive dialogue.