India Joins OECD/G20 Inclusive Framework Tax Deal
Source : PIB
International Relation

Content for India Joins OECD/G20 Inclusive Framework Tax Deal Article

1. Key Facts
2. India’s Stand

Why in News ?

Majority of the members OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (including India) adopted a high-level statement containing an outline of a consensus solution to address the tax challenges arising from the digitalisation of the economy.

Key Facts

• The proposed solution consists of two components

  

  1. About reallocation of additional share of profit to the market jurisdictions.
  2. Consisting of minimum tax and subject to tax rules.
• The principles underlying the solution vindicates India’s stand for a greater share of profits for the markets, consideration of demand side factors in profit allocation, the need to seriously address the issue of cross border profit shifting and need for subject to tax rule to stop treaty shopping.
• What is India’s Stand ?
  • India is in favour of a consensus solution which is simple to implement and simple to comply.
  • At the same time, the solution should result in allocation of meaningful and sustainable revenue to market jurisdictions, particularly for developing and emerging economies.
  • India will continue to be constructively engaged for reaching a consensus based ready to implement solution with Pillar one and Pillar two as a package by October and contribute positively for the advancement of the international tax agenda.

Daily Current Affairs : Click Here