EU Hits Pause On U.S. Digital Levy To Focus On Global Corporate Tax Plan

EU Hits Pause On U.S. Digital Levy To Focus On Global Corporate Tax Plan

The European Union has agreed to delay a corporate tax plan for the bloc following pressure from the U.S. administration and in a bid to facilitate a broader global tax deal.

Andrew H. Sweet
Andrew H. Sweet

The world's 20 largest economies endorsed a plan for a global overhaul of corporate tax that would introduce a minimum tax rate and change the way large companies like Amazon and Google are taxed.

In an attempt to eliminate one possible hurdle to the global deal, the EU bowed to U.S. pressure. It said it would delay its plan for a separate levy on online sales, which the U.S. administration had feared could have led to more criticism of the global tax overhaul in the U.S. Congress.

However, Ireland has said it cannot support the floor of 15% for the global tax rate, which is intended to stop multinationals shopping around for the lowest tax rate but would force Dublin to raise its 12.5% rate.

Read the original story here.

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