Historic move set in motion for equitable shift in global tax power; India votes for change

Historic move set in motion for equitable shift in global tax power; India votes for change

In what will transform the shape and nature of the global tax power structure, India has backed a historic move to shift the reins of decision making from OECD to another, more equitably constituted, platform, a ToI report said. Currently, OECD — a 38-member grouping dominated by rich nations — makes these decisions. India voted … Read more

Deal to force multinational companies to pay 15% minimum tax is marred by loopholes: EU Tax Observatory

Deal to force multinational companies to pay 15% minimum tax is marred by loopholes: EU Tax Observatory

An ambitious 2021 agreement by more than 140 countries and territories to weed out tax havens and force multinational corporations to pay a minimum tax has been weakened by loopholes and will raise only a fraction of the revenue that was envisioned, a tax watchdog backed by the European Union (EU) has warned. The landmark … Read more

Rich nations stick to coal phase-out plans as China builds new projects

Rich nations stick to coal phase-out plans as China builds new projects

Rich nations have stuck to pledges to phase-out coal power despite the war in Ukraine to help reach their climate targets but expansion of China‘s coal fleet risks counteracting the impact of the closures, a report said on Tuesday. Countries within the Organization for Economic Cooperation and Development (OECD) policy forum and the European Union … Read more

Six months before COVID struck, this move protected India Inc from pandemic, says RBI

Six months before COVID struck, this move protected India Inc from pandemic, says RBI

NEW DELHI: Around six months before the first lockdown was imposed to stem the spread of the coronavirus, the government took a step that subsequently went on to shield Indian corporates from the COVID crisis, the Reserve Bank of India said. The step in question is the Centre’s decision to slash corporate taxes in September … Read more

Taxpayers from France, Swiss companies cannot claim low tax benefit by citing tax treaties with other OECD members

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Indian arms of companies from France, Netherlands would now not be eligible for low tax rate of 5% while remitting dividends to their overseas parents. India’s apex direct taxes body Thursday said taxpayers from these countries cannot apply the benefits available under tax treaties with entered into by India with Columbia, Slovenia making use of … Read more

OECD global tax deal: Large Indian companies rethink overseas investment plans

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Several large Indian companies exploring outbound investments have put their plans on hold following a global tax deal over concerns of additional taxes and compliance challenges related to the new framework adopted by the world’s leading industrial bloc. Large companies, especially in the information technology (IT) and information technology-enabled services (ITeS) sectors, were looking to … Read more

OECD deal: MNCs will be subject to a minimum tax of 15% from 2023

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Multinational corporations will be subject to a minimum tax of 15% from 2023, in a major reform of the international tax system finalised by the OECD on Friday. The framework, backed by 136 countries, including India, seeks to ensure a fair share of taxes for countries where multinationals and global digital companies such as Netflix, … Read more

OECD marginally lowered India’s FY22 growth projection to 9.7%

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The Organisation for Economic Co-operation and Development (OECD) has marginally lowered India’s growth projection for the ongoing fiscal to 9.7%, a reduction of 20 basis points (bps), and to 7.9% for the next financial year, down 30 bps from its May forecast, citing pandemic risks. The inter-governmental economic organisation with 38 member nations had slashed … Read more

Nirmala Sitharaman urges G20 nations for aligning recovery strategies with climate concerns

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Finance Minister Nirmala Sitharaman on Saturday urged G20 nations for aligning economic recovery strategies with climate concerns. Participating virtually in the Third G20 Finance Ministers and Central Bank Governors (FMCBG) Meeting under the Italian Presidency, Sitharaman shared recent policy responses of Government of India to strengthen the health system and economy, including the efficient application … Read more

India to strive for higher share of MNC digital tax

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India will work with like-minded countries to ensure developing countries like itself get a fair share in the proposed tax on multinational digital companies under a global deal being worked out, a top government official told ET. “We would speak to like-minded countries… We should get a better deal,” the official said. India on Friday … Read more