Leave Digital Tax Ban Out of Treaty, Nigeria and Kenya Say

A commitment to stop countries from enacting digital taxes should be political, not part of a treaty to implement the global tax deal, the governments of Nigeria and Kenya said in letters released Thursday.

Last year, nearly 140 countries signed the OECD-led global tax agreement, which includes a plan to reallocate a portion of the largest multinationals’ profits—known as Pillar One. But Nigeria and Kenya were among a small handful of countries involved in discussions that haven’t signed the 2021 agreement.

Rising trade tensions over digital taxation had ramped up urgency for the deal. Over recent years, a growing number ...