The trade agreement states that Cambodia, Malaysia, and Thailand will not impose digital services taxes, or similar taxes, that discriminate against U.S. companies, in law or in fact.
Regfollower Desk
The White House recently announced trade agreements with Cambodia, Malaysia, and Thailand, which include commitments from these nations to avoid imposing digital services taxes (DSTs) or similar measures that could unfairly target US companies.
Specifically, the agreements with Cambodia and Malaysia explicitly state that these countries will not implement DSTs or comparable taxes that discriminate against US businesses, either in practice or by law.
None of the countries currently apply a digital services tax (DST), but each has relevant measures. Malaysia taxes income from e-commerce activities connected to the country, even when the income is received elsewhere. Cambodia has neither implemented nor indicated plans to introduce a DST or similar tax.
Similarly, Thailand has pledged to refrain from introducing DSTs or discriminatory measures against US digital services and products. Thailand has proposed a 5% withholding tax on e-commerce services, including online advertising, gaming, and shopping, though it has not enacted a DST.
