EU set to delay the digital tax proposal to focus on global corporate tax plan
On 12 July 2021 the EU Commission announced that EU has postponed the publication of its EU-wide digital tax proposal which would target tech giants like Amazon, Facebook and Google. Originally, the publication had been planned for July 2021, however, there was a pressure from the United States claiming that the digital tax of the EU has been made redundant by an own EU-wide agreement to reform the international tax system. The G20 also agreed on that.
As it has been published before, the main focus areas of the reform of the international tax system are the global minimum tax rate of 15% for corporations and the redistribution of taxation rights. The European Commission has confirmed that the process of the international tax reforms will require a final effort from all parties, and the Commission is committed to focusing on that. According to the new plan, the EU-wide digital tax proposal will be presented after finalizing the international tax reforms in October 2021.