Digital Tax

Uncertainty over OECD's global tax deal affects collection in FY23

May delay implementation of global tax deal

Discusses adopting multilateral approach in tax treaties for faster solution

US to withdraw threat of retaliatory trade action

Tighter rules likely for social media firms, may supersede IT laws; Digital tax for US companies to stay until OECD pact comes into force. More on today's top headlines

There is little consensus among experts on whether or not the deal will bring in more revenues to India than the equalisation levy

In meet with US CEOs, Sitharaman says India offers a spectrum of opportunities to businesses

Govt must protect revenues under the new tax deal

OECD agreement to be deliberated by finance ministers of G20 nations on Wednesday

India may have to withdraw digital services tax or the equalisation levy and give a commitment not to introduce such measures in the future if the global minimum tax deal comes through

The 15% floor agreed to is, however, well below a corporate tax rate which averages around 23.5% in industrialised countries.

India introduced equalisation levy for digital advertising services in 2016 at the rate of 6 per cent

Paper by Shardul Amarchand Mangaldas and Jindal Global Law School opposes digital service tax, currently imposed by individual countries, such as equalisation levy by India

In a Q&A, Pascal Saint-Amans, director at Centre for Tax Policy and Administration, OECD says global digital tax and digital service tax by individual countries can't co-exist

The G24 now pressed for a gradual removal of unilateral measures, simultaneous to revenue gains from the implementation of Pillar 1

The government has taken a balanced stance by committing to the multilateral approach for addressing tax challenges of digitalisation

The time-hallowed principle of focusing on direct taxes is worth questioning

Here are the best of Business Standard's opinion pieces for Monday

India and other developing countries were fighting to include companies with at least Euro 1 billion in revenues as against the final proposal of Euro 20 billion revenues and a profit margin above 10%

Following the consultation, the USTR has decided to impose a tariff of up to 25 per cent ad valorem on aggregate level of trade on a slew of Indian products