US, India Extend Digital Tax Truce to June 30 as Deadline Approaches

The United States and India have extended a standstill agreement on U.S. retaliation over India's digital-services tax until Sunday, aligning it with a fast-approaching deadline for a global deal to reallocate taxing rights on the world's biggest and most profitable companies, the U.S. Treasury said on Friday.

In a brief announcement, the Treasury said that a November 2021 political compromise that expired March 31 would be extended through the end of the month, as negotiations on the "Pillar 1" tax agreement continue.

The Pillar 1 deal is in danger of collapse, as the U.S., India and China have failed to agree on key elements of the deal related to calculation of transfer pricing to help determine local tax liabilities.