India joins global consensus framework headed by US to tax multinational firms
India has joined a global consensus framework deal to tax multinational companies, the government said on Friday, an effort backed by the United States.
Officials from 130 countries, including G20 nations and OECD members, agreed on Thursday in Germany’s business hub of Frankfurt to the broad outlines for an overhaul of rules for taxing international companies.
For the latest headlines, follow our Google News channel online or via the app.
“The principles underlying the solution vindicate India’s stand,” the government said in a statement.
It listed advantages such as a greater share of profits for the markets, consideration of demand-side factors in profit allocation and tax rules to stop treaty shopping.
But some issues, such as profit-sharing and the scope of tax rules, remain open and need to be resolved, it added.
US Treasury Secretary Janet Yellen urged Indian Finance Minister Nirmala Sitharaman on Tuesday to discuss a “robust global minimum tax.”
The deal calls for a minimum tax rate of at least 15 percent, a key element pushed by the administration of US President Joe Biden.
An implementation plan and remaining issues will be finalized by October, with the deal expected to be implemented in 2023, said the Organization for Economic Cooperation and Development (OECD), which coordinated the global campaign.
After the agreement, Yellen has said global consensus would move the world a step closer to ending a “race to the bottom” on taxation and allow for critical investments in infrastructure, education, and pandemic relief.
India favors a consensus solution that is “simple to implement and simple to comply with,” the government said.
“The solution should result in allocation of meaningful and sustainable revenue to market jurisdictions, particularly for developing and emerging economies,” it added.
Read more: White House says G7 leaders will endorse proposed 15 percent global corporate tax
-
G7 global tax plan won’t ‘break the camel’s back’ in GCC states: Experts
Earlier this month, the G7 announced an unprecedented plan to cooperate on taxing multinational companies in a bid to put an end to tax abuse. The ... Gulf -
Swiss vote on tax hikes to tackle climate change
Swiss voters are casting ballots in a referendum on a proposed “carbon dioxide law” that would hike fees and taxes on fuels that produce greenhouse ... World News -
India cuts taxes on medicines and equipment to treat COVID-19
India on Saturday cut taxes on medical equipment such as oxygen concentrators and drugs used to treat COVID-19 infections, after widespread criticism ... World News -
White House says G7 leaders will endorse proposed 15 percent global corporate tax
G7 leaders meeting in Britain will endorse US President Joe Biden’s proposal for global minimum tax of at least 15 percent on corporations, White ... World News -
G7 nations sign landmark global agreement to make tech giants pay fair taxes
The world’s richest countries signed a landmark global agreement Saturday to confront tax avoidance and make sure that giant tech companies pay their ... Economy -
G7 finance ministers meet in London to broker global tax deal
Finance ministers from the G7 group of rich nations will meet in London on Friday for two days of talks aimed at moving closer to a global deal to ... Economy