US Wins Conditional Digital-Tax Truce as Global Deal Advances

The Biden administration secured an extension of a worldwide freeze on new digital taxes, putting it on a collision course with Canada after Ottawa refused to endorse the deal.

The Organization for Economic Cooperation and Development unveiled the one-year extension in Paris Wednesday. This gives the more than 140 nations involved until the end of 2024 to ratify a new global rule-book for allocating taxing rights over the largest multinationals, known as OECD Pillar One.

The 2021 standstill on so-called digital services taxes helped defuse trade battles while negotiators sought to iron out the broader tax agreement. But the discussions ...