Negotiations for a global tax deal are ongoing past the June 30 deadline, with the G20 finance leaders meeting this week expected to address the stalled “Pillar 1” plan.
This plan, part of a 2021 tax agreement, aims to replace individual digital services taxes on major U.S. tech companies with a new global tax mechanism.
The stakes are high, as failing to finalize the deal could lead to the reimposition of national taxes on U.S. tech giants and potential U.S. tariffs on billions in exports.
Although standstill agreements preventing U.S. trade retaliation against several countries expired on June 30, no new tariffs have been imposed yet.
The G20 is urged to finalize and sign the Multilateral Convention by the end of summer, with the EU emphasizing this as a top priority.
Meanwhile, Canada has introduced its own digital services tax, citing the failure to reach a global agreement by the deadline as the reason for its unilateral action.
Source: Reuters