Yellen Says EU Delay on Digital Tax Helps Global Business Tax Agreement
BRUSSELS — Treasury Secretary Janet Yellen thanked EU officials for delaying work on a controversial digital services tax, saying upcoming negotiations on a proposed global minimum corporate tax should clarify the levies that could be allowed.
European Union officials said on Monday they would delay plans for their proposed digital services tax until October, which Yellen said risked undermining the deal recently reached by Group of Group leaders. 20 major economies to establish a global minimum corporate tax. by 15%.
“I think this gives us time to clarify the international agreement which we are all in favor of,” Yellen said after meetings with EU officials and national leaders from some EU countries. “Exactly what is allowed and what is not remains unclear at this stage,” she said, adding that there would be many negotiations on these issues before October, when participants aim to conclude the agreement. ‘OK.
Ms Yellen and other US officials said the EU’s digital tax, if continued, could undermine prospects for the global tax deal, just as President Biden faces the challenge of getting approval of Congress.
“This is a delicate time in the negotiations in the United States and I think it avoids throwing something into the negotiations that would not be clear and could complicate our progress,” Ms. Yellen said.