No data to display.

EU decides to delay corporate tax plan on pressure from US

By Shubhangi on Jul 13, 2021 | 04:33 AM IST

EU.png

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

Stock View