U.S., 5 European countries reach deal on resolving trade dispute over digital services tax
Updated: 2021-10-22 13:32:30 KST
The U.S. and five European nations have sealed a deal to resolve a prolonged trade dispute over digital taxes on some of America's tech giants.
Bloomberg reported Thursday that the joint statement, issued by the U.S., Britain, France, Italy, Spain and Austria, states that they've agreed to transition from the existing digital services taxes to the new multilateral solution.
It adds they've committed to hold constructive dialogue on the digital services tax that is largely aimed at big U.S. tech firms, such as Google, Facebook and Amazon.
Under the deal, the five European nations will keep their current digital taxes in place until the OECD-brokered global tax agreement comes into force in 2023.
Nevertheless, they've agreed to withdraw their digital services tax schemes as part of a sweeping global tax deal agreed earlier this month by nearly 140 countries to adopt a 15 percent global minimum corporate tax and grant some taxing rights on large profitable companies to market countries.
In exchange, Washington agreed to drop its planned tariff retaliation against the five countries.
Following the agreement, U.S. Trade Representative Katherine Tai said Washington will continue to work with the five governments to ensure the deal's smooth implementation as well as a rollback of the existing digital tax schemes.
Kim Hyo-sun, Arirang News.