The European Union has decided to stop its digital tax studies. EU Commission spokesman Daniel Ferrie said an agreement has been reached for a fairer tax system.
The European Union (EU) reported that work on the digital tax proposal has stopped to focus on the broader global minimum tax treaty.
EU Commission spokesman Daniel Ferrie stated that an agreement for a more stable, sustainable and fair tax system was reached at the G20 Summit in Venice, Italy, saying: “Successful completion of the process requires let all parties create the ultimate driving force. During this period, we decided to stop our work on the EU’s own new project, the digital tax proposal.
Italian Economy and Finance Minister Daniele Franco announced on July 10 that they, as G20 countries, had reached a very important agreement on the international tax regulation of multinational companies.
“THE LOW TAX RACE BETWEEN COUNTRIES WILL END”
Franco noted that he and his counterparts agreed that multinational companies must pay taxes where they operate and generate profits.
The Italian minister stressed that they intend to put in place the agreed mechanisms until the G20 Leaders’ Summit to be held at the end of October.
US Treasury Secretary Janet Yellen said the “Agreement will end the low-tax race between countries” regarding the new tax mechanism that will allow countries to tax large and profitable multinational companies. at a rate of at least 15 percent.