Sec. Yellen’s remarks raise fresh questions on digital services taxes

US Secretary of the Treasury, Janet Yellen, has raised fresh questions about the possibility of the US signing a multilateral treaty as part of a global tax deal.

Yellen, speaking on a trip to Luxembourg, said that the US will not be able to sign the multilateral treaty, which is part of the larger tax agreement brokered by the Organization for Economic Cooperation and Development (OECD) on global tax rules, by the end of the year 2023 due to “unresolved issues,” meaning the process will have to wait until next year.

Business groups have welcomed the postponement, but have also expressed worries about the looming deadline for the extension of the digital tax moratorium.