drishti current affairs magazine

competition wizard magazine competition wizard magazine   published this article page no      78   global minimum tax is part of the inclusive framework on base erosion and profit shifting (beps) agreed upon by g20 countries and oecd.global minimum tax will apply to mncs with revenue above €750 million and it aims for developing a taxation structure that is relevant for a digital and globalised world. oecd and global minimum taxunder the oecdg20 inclusive framework on base erosion and profit shifting (beps) 139 countries and jurisdictions are collaborating to put an end to tax avoidance strategies arising from digitalisation and globalisation of the economy. o beps refers to tax planning strategies used by mncs that exploit gaps and mismatches in tax rules to artificially shift profits to low or notax locations where there is little or no economic activity resulting in little or no overall corporate tax being paid.  recently over 130 countries including ind...

competition wizard magazine competition wizard magazine   published this article page no      79   consensus on tax rate world inequality report has suggested that 15% rate is lower than what workingimplication on indiaexperts believe the tax would be advantageous for india as the effective domestic tax rate is above the threshold and india being a large potential market would continue to attract foreign investments.the tax deal will mean removal of existing digital service taxes and other unilateral measures by 2023. india will need to withdraw the equalization levy that was introduced in 2016. o india will get additional taxing rights which are beneficial but the exact quantum will need to be compared to domestic equalisation levy.large indian headquartered mnes may also need to comply with pillar one rules and india will need to share its taxing right with other countries.it is also likely to negate any treaty benefit to achieve minimum taxation.india could e...

competition wizard magazine competition wizard magazine   published this article page no      80   favoring rich nations as per oxfam report g7 and eu will take home twothirds of new cash that gmt will bring in while the worlds poorest countries will recover less than 3% despite being home to more than a third of the worlds population.ban on unilateral taxes many developing countries have expressed concerns about the implementation of these new taxing rules being conditioned upon them removing all unilateral taxes on technology companies. o many countries earn significant revenue by levying tax on digital services. conclusion a global minimum tax is a laudable attempt to make international tax arrangements fairer and work better in a digitalised and globalised world economy. however there are major obstacles that may impede the overall implementation of the agreement. there is a need to support this effort to build a consensus as countries rich and poor need mor...