By Doug Connolly, MNE Tax
The Biden Administration has been reaching out to several European countries asking them to press the European Commission to put off a digital levy proposal that could derail international talks on a global minimum tax and new profit allocation rules, according to June 30 reports in AFP and Politico.
The digital levy proposal, expected to be released mid-July, “threatens the work undertaken via the OECD/G20 process,” a US diplomatic document reportedly stated.
The European Commission has argued that the digital levy it will propose is outside of the scope of the OECD talks taking place on revising international tax rules. It plans to propose the levy alongside any international tax agreement, contending that the levy is different than the types of digital services taxes that have triggered retaliatory trade threats from the US.
However, the pending digital levy proposal remains politically sensitive. US Republican lawmakers have suggested allowing such a levy under an international tax deal would be unacceptable.
Doug Connolly
Doug Connolly is Editor-in-Chief of MNE Tax. He has more than 10 years of experience covering tax legal developments, previously working with both a Big Four firm and a leading legal publisher. He holds a law degree from American University Washington College of Law.
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