Yellen Concerns on Global Treaty Spark Questions on Digital Taxes

Treasury Secretary Janet Yellen’s comments Monday about US concerns with a global tax treaty are raising new questions about a freeze on digital services taxes.

In remarks made on her trip to Luxembourg, Yellen said the US would be unable to sign a multilateral treaty—which is part of a larger global tax deal brokered by the OECD on global tax rules—by the end of 2023 due to unresolved issues.

“So this process will take into next year,” she said.

Business groups welcomed the delay, but also expressed concerns about a looming deadline to extend the moratorium on digital taxes, which ...