Saturday, Jun 3, 2023
English News
  • Hyderabad
  • Telangana
  • Andhra Pradesh
  • India
  • World
  • Entertainment
  • Science and Tech
  • Sport
  • Business
  • ...
    • NRI
    • View Point
    • cartoon
    • Columns
    • Reviews
    • Education Today
    • Property
    • Videos
    • Lifestyle
    • Rewind
E-Paper
  • NRI
  • View Point
  • cartoon
  • Columns
  • Reviews
  • Education Today
  • Property
  • Videos
  • Lifestyle
  • Rewind
Home | Business | India May Gain From Global Corporate Tax Pact

India may gain from global corporate tax pact

India had in September 2019 slashed corporate taxes for domestic companies to 22 per cent and to 15 per cent for new domestic manufacturing units.

By PTI
Published Date - 10:46 PM, Sun - 6 June 21
India may gain from global corporate tax pact
India had in September 2019 slashed corporate taxes for domestic companies to 22 per cent and to 15 per cent for new domestic manufacturing units.
whatsapp facebook twitter telegram

New Delhi: India is likely to benefit from the global minimum 15 per cent corporate tax rate pact inked by the world’s richest nations as the effective domestic tax rate is above the threshold, and the country would continue to attract investment, tax experts said on Sunday.

The Finance Ministers of G-7 countries, comprising US, UK, Germany, France, Canada, Italy and Japan, on Saturday reached a landmark deal on taxing multinational companies as per which the minimum global tax rate would be at least 15 per cent. They also agreed to put in place measures to ensure businesses pay taxes in the countries where they operate, a move aimed at plugging loopholes in cross-border taxation.

Nangia Andersen India Chairman Rakesh Nangia said the G7 commitment to global minimum tax rate of 15 per cent works well for the US government and most other countries in western Europe. However, some low-tax European jurisdictions such as the Netherlands, Ireland and Luxembourg and some in the Caribbean rely largely on tax rate arbitrage to attract MNCs.

India had in September 2019 slashed corporate taxes for domestic companies to 22 per cent and to 15 per cent for new domestic manufacturing units. The concessional tax rate was extended to the existing domestic companies as well, subject to certain conditions.

Consulting firm AKM Global Tax Partner Amit Maheshwari said India is expected to benefit as it is a big market for a large number of tech companies. “It remains to be seen how the allocation would be between market countries. Also, the global minimum tax of at least 15 per cent means that in all probability the concessional Indian tax regime would still work, and India would continue to attract investment,” Maheshwari added.

EY India National Tax Leader Sudhir Kapadia said the global corporate tax pact is a path breaking one, especially for large and developing countries like India which would always find it very difficult to keep corporate tax rates artificially lower in a bid to increase much needed foreign direct investments in the country.

“Even the recently announced lower rate of 15 per cent for new manufacturing units in India just about meets this new threshold, thus, not affecting this much needed boost to manufacturing in India. Equally important is the explicit granting of taxing rights to “market countries” for a share of global profits of multinational corporations, thus aligning right to taxation with place of economic contribution,” Kapadia added.

The decision of the Group of seven (G-7) advanced economies would be placed before the G-20 countries, a group of developing and developed nations, in a meeting scheduled for July in Venice.


Now you can get handpicked stories from Telangana Today on Telegram everyday. Click the link to subscribe.

Click to follow Telangana Today Facebook page and Twitter .


  • Follow Us :
  • Tags
  • Corporate tax
  • global corporate tax
  • global corporate tax pact
  • global tax rate

Related News

  • WTC Final: David Warner is looking good, says Usman Khawaja

    WTC Final: David Warner is looking good, says Usman Khawaja

  • Tamil Nadu: Stalkers a rising threat to women, take cops off guard

    Tamil Nadu: Stalkers a rising threat to women, take cops off guard

  • FIH Hockey Pro League: India find redemption in 5-1 win against Belgium

    FIH Hockey Pro League: India find redemption in 5-1 win against Belgium

  • Editorial: Semiconductor dreams

    Editorial: Semiconductor dreams

  • ECB CEO believes India justified in getting 38 percent of earnings in ICC financial model

    ECB CEO believes India justified in getting 38 percent of earnings in ICC financial model

  • Ather launches its electric scooter 450S in India, check details

    Ather launches its electric scooter 450S in India, check details

Latest News

  • ‘Rahul Gandhi a strong believer in deepening India-US ties’

    7 mins ago
  • Shobhaa De hails Kangana: ‘About time a star debunked the airport look nonsense’

    28 mins ago
  • Odisha train accident: Death toll rises to 261, rescue operations complete

    47 mins ago
  • Sergio Ramos says he will play his final game for PSG on Sunday

    59 mins ago
  • Apple AR headset may come in 6 colours, 2 storage capacities

    1 hour ago
  • Odisha: PM Modi to visit train accident site, Cuttack hospital

    1 hour ago
  • US school system sues Meta, Google, Snapchat over mental health crisis among students

    1 hour ago
  • ‘It was a bloodbath on the train tracks’: Passenger on Coromandel Express narrates incident

    1 hour ago

company

  • Home
  • About Us
  • Contact Us

business

  • Subscribe

telangana today

  • Telangana
  • Hyderabad
  • Latest News
  • Entertainment
  • World
  • Andhra Pradesh
  • Science & Tech
  • Sport

follow us

© Copyrights 2022 TELANGANA PUBLICATIONS PVT. LTD. All rights reserved. Powered by Veegam