US Treasury Secretary said the deal would end the practice of countries racing to the bottom on corporate taxation, Reuters said. She also said that European countries would repeal their digital services taxes because of it.
The US, which is part of the G7, has been threatening to slap punishing tariffs on six countries, including fellow G7 members Britain and Italy, over their digital taxes. The UK previously defended its digital tax as “reasonable, proportionate and non-discriminatory.”
Facebook, Amazon, and Google all seem publicly supportive of (or are at least resigned to) the G7 tax deal, according to CNBC’s reporting. The G7 (Group of Seven) nations are the US, the UK, Canada, France, Germany, Italy, and Japan.