According to the Ministry of Finances statement, India supports solutions that allocate meaningful and sustainable income to market jurisdictions, especially for developing and emerging economies.
05 July 2021 Current Affairs:The G20/OECD Inclusive Framework Tax Agreement has been signed by India.
Highlights:
♦ Most members of the G20/OECD Inclusive Framework for Basic Erosion and Profit Shifting, including India, passed a high-level statement containing an outline of a consensus solution to the taxation challenges posed by the digitalization of the economy.
♦ The proposed solution is consists of two components:
♦ Pillar One, which consists of re-allocating an additional share of profit to market jurisdictions; and
♦ Pillar Two, which consists of a minimum tax and is subject to tax rules.
♦ Some significant issues, such as profit allocation and the scope of subject to tax rules, remain unresolved and must be addressed.
♦ Furthermore, the proposal's technical details will be worked out in the coming months, with a consensus agreement expected by October 2021.
♦ According to the Ministry of Finance’s statement, India supports solutions that allocate meaningful and sustainable income to market jurisdictions, especially for developing and emerging economies.
Highlights:
♦ Most members of the G20/OECD Inclusive Framework for Basic Erosion and Profit Shifting, including India, passed a high-level statement containing an outline of a consensus solution to the taxation challenges posed by the digitalization of the economy.
♦ The proposed solution is consists of two components:
♦ Pillar One, which consists of re-allocating an additional share of profit to market jurisdictions; and
♦ Pillar Two, which consists of a minimum tax and is subject to tax rules.
♦ Some significant issues, such as profit allocation and the scope of subject to tax rules, remain unresolved and must be addressed.
♦ Furthermore, the proposal's technical details will be worked out in the coming months, with a consensus agreement expected by October 2021.
♦ According to the Ministry of Finance’s statement, India supports solutions that allocate meaningful and sustainable income to market jurisdictions, especially for developing and emerging economies.