The European Commission (EC) said it will delay a corporate tax plan for the bloc in a bid to facilitate the broader global tax deal, Trend reports citing Xinhua.
"We have decided to put on hold our work on our new digital levy," the commission's spokesman for taxation and customs Daniel Ferrie told the daily briefing, adding that the bloc will reassess the situation in autumn.
Finance ministers of the world's 20 largest economies (G20) on Saturday agreed to go ahead with the plan to design a global tax system that would impose a minimum levy on multinational companies.
If implemented, this would put an end to multinational corporations shifting profits to low-tax heavens around the world.
"This was an extraordinary result after years and years of negotiations for which the EU Commission has worked tirelessly," said Ferrie when asked to comment on this.
"Successfully concluding this process will require a final effort by all parties and the Commission will focusing on this effort," he added.
The idea to levy a digital tax by the European Union (EU) had been floated in September 2020, when European Commission President Ursula von der Leyen announced the initiative in her State of the Union speech. A month later, the European Commission published its work program for 2021 where it announced a legislative proposal on the digital levy.