EU decides to delay corporate tax plan on pressure from US
By Shubhangi on Jul 13, 2021 | 04:33 AM IST
The
European Union has decided to delay the corporate tax plan with pressure from
the US administration and to make way for wider global tax deal.
Ireland, on
the other hand, rejected the delay criticizing the wider tax deal.
On
Saturday, 20 economies supported a plan for global tax deal under which a
minimum tax rate would be introduced.
This would
alter how companies like Amazon and Google pay taxes based partly on
where they sell their products and services rather than on the location of
their headquarters, reported Reuters.
"We have decided to put on hold our work on our new
digital levy," EU commission spokesman Daniel Ferrie told a news
conference in Brussels on Monday, noting the bloc will reassess the situation
in autumn, reported Reuters. The tax proposal had been planned for later in
July.
US Treasury Secretary Janet visited Brussels during the time
of the announcement that had pressurized during a G20 summit at the weekend and
before.
Three EU countries including Ireland, Hungary and Estonia
have been against the global deal.
(With
inputs from Reuters)
Picture
Credits: Reuters