Home > activity > [earn usd online]India agrees on global framework to tax multinationals in markets they have presence
[earn usd online]India agrees on global framework to tax multinationals in markets they have presence

  Notably most of those countries did not sign the statement agreeing to the framework.

  In hopes that at least the major low-tax countries would fall in line, Yellen said: “Today is an historic day for economic diplomacy. For decades, the United States has participated in a self-defeating international tax competition, lowering our corporate tax rates only to watch other nations lower theirs in response. The result was a global race to the bottom.

  ”Today’s agreement by 130 countries representing more than 90 per cent of global GDP is a clear sign: the race to the bottom is one step closer to coming to an end.”

  The deal has two parts or “pillars”, as the OECD calls it.

  The first ensures the rights of countries to tax the MNEs on their incomes there.

  ”Under Pillar One, taxing rights on more than $100 billion of profit are expected to be reallocated to market jurisdictions each year.”

  The second pillar sets the global minimum for taxes at 15 per cent without a ceiling on the maximum.

  With a minimum rate of at least 15 per cent, it “is estimated to generate around USD 150 billion in additional global tax revenues annually”, the OECD said.

  According to an analysis of the implications for India by the professional services company Dezan Shira & Associates in India Briefs, “India will be able to tax large MNCs (multinational corporations) doing business in the country, without a physical presence or permanent establishment, at 20 per cent of their profits (exceeding a 10 per cent margin)”.

  ”Thus, the measure, if globally approved, will impact digital companies in whichever markets they earn revenues and make profits based on their online presence,” it said, adding that “however, the G7 countries have also called for the elimination of the digital services tax or equalisation levy”.

Copyright © http://www.sfspirits.com 2000-2020 All Rights Reserved
all rights reserved:SFS Games