US Drops Tariff Threat in Digital Tax Transition Deal With European Countries

PARIS/WASHINGTON—The United States on Thursday withdrew its threat of tariffs against five European countries over their digital services taxes as part of a deal to manage the transition to a new global tax regime for large highly profitable corporations. Austria, Britain, France, Italy, Spain will get to keep their digital taxes in place until a global tax agreement comes into force in 2023, under the plan jointly announced with Washington. The countries had agreed to withdraw their digital services taxes as part of a sweeping global tax deal agreed on Oct. 8 by 136 countries to adopt a 15 percent global minimum corporate tax and grant some taxing rights on large profitable companies to market countries. The timing and method of the digital tax withdrawals, largely aimed at big U.S. tech firms including Google, Facebook, and Amazon.com was one of the major questions left unanswered in the tax deal. Under …

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