India joins G20-OECD Tax Framework deal

India and majority members of OECD and G20 Inclusive Framework on Base Erosion & Profit Shifting adopted a high-level statement that outlines a consensus solution in a bid to address tax challenges that are arising from digitalisation of economy.

This proposed solution comprises of two components:

1. First pillar is about reallocation of additional profit share to market jurisdictions and
2. Second pillar comprises of minimum tax and subject to tax rules.
3. However, some significant issues like share of profit allocation and scope of subject to tax rules are open and need to be addressed.
4. Technical details of proposal will be worked out soon and a consensus agreement will come by October 2021.

Published date : 05 Jul 2021 05:00PM