Brussels, BELGIUM — The EU has agreed to delay its digital tax that was scheduled for presentation this month, until the fall, according to news reports. The announcement comes as G20 Finance Ministers endorsed an OECD plan for global tax reform Saturday and final details of that plan are expected to be adopted in October.
Tensions between certain EU nations and the U.S have escalated over digital taxes that target U.S. companies in ways that likely violate trade agreements.
U.S. Treasury Secretary Janet Yellen is in Brussels this week to meet with her European counterparts. The digital levy was part of a plan last July for Europe to fund its economic recovery from the pandemic.
The Computer & Communications Industry Association has long advocated for consensus-based international tax reform for the digital age rather than narrow taxes targeting particular sectors or businesses.
The following can be attributed to CCIA Vice President and head of the Brussels office Christian Borggreen:
“It is positive that the European Commission is prioritising global tax reform over a unilateral digital levy which risks derailing international efforts.”
“We urge all nations to immediately remove unilateral digital taxes as foreseen in the global framework.”
“A new global tax framework for the 21st Century is crucial to ensure legal certainty, for economic recovery and to avoid international tax and trade tensions.”