On October 21, 2021, in a statement, the United States (US) Department of the Treasury, together with Austria, France, Italy, Spain, and the United Kingdom (UK), announced an agreement on the treatment of Digital Services Taxes (DSTs) before the full implementation of Pillar 1 of the Organization for Economic Co-operation and Development (OECD) agreement.

Under the agreement, DST liability accrued by US companies in certain circumstances will be creditable against future income taxes under Pillar 1 of the OECD agreement. The US will terminate the Section 301 investigations, and the additional duties on goods of Austria, France, Italy, Spain, and the UK previously adopted and suspended.

According to the press release from the Office of the US Trade Representative (USTR), the US will monitor the agreement's implementation. The DST Section 301 investigations also cover Turkey and India, but they have not joined in the agreement.

The Treasury's statement can be found here:

https://home.treasury.gov/news/press-releases/jy0419

USTR's press release can be found here:

https://ustr.gov/about-us/policy-offices/press-office/press-releases/2021/october/ustr-welcomes-agreement-austria-france-italy-spain-and-united-kingdom-digital-services-taxes

More information on the OECD agreement and its implementation can be found here:

https://www.oecd.org/tax/beps/statement-on-a-two-pillar-solution-to-address-the-tax-challenges-arising-from-the-digitalisation-of-the-economy-october-2021.htm