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The decision of the Trump administration to withdraw from the OECD's global tax deal will not have any impact on India, but it will severely affect the progress made thus far in reaching an international consensus on global minimum tax, experts said on Tuesday. Soon after taking charge, US President Donald Trump in a Presidential memorandum said that the "Global Tax Deal have no force or effect within the United States", thus nullifying the progress made so far by the Organisation for Economic Cooperation and Development (OECD) to bring 140 countries on the same platform to levy a minimum 15 per cent tax on profits of multinational corporates. Nangia & Co LLP Managing Partner Rakesh Nangia said the impact of the US pulling out of the global tax deal would have monumental impact on the global tax landscape, especially for countries/jurisdictions which have already adopted/formulated rules in their domestic law for implementing Global anti-Base Erosion Model or GloBE rules (Pillar ..
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 has warned. The landmark agreement, brokered by the Organization for Economic Cooperation and Development, set a minimum global corporate tax of 15%. The idea was to stop multinational corporations, among them Apple and Nike, from using accounting and legal maneuvers to shift earnings to low- or no-tax havens. Those havens are typically places like Bermuda and the Cayman Islands where the companies actually do little or no business. The companies' maneuvers result in lost tax revenue of $100 billion to $240 billion a year, the OECD has said. According to the report, being released Monday by the EU Tax Observatory, the agreement was expected to raise an amount equal to nearly 10% of global ...
The US, India and about 140 other nations are close to reaching an agreement on the overhauling of global tax norms to ensure that multinationals pay taxes wherever they operate. At a meeting with Finance Minister Nirmala Sitharaman on the sidelines of G20 finance ministers and central bank governors meeting here, US Treasury Secretary Janet Yellen appreciated India's focus on finalizing the "historic Two-Pillar global tax deal" in the OECD's Inclusive Framework. "I believe that we are close to reaching an agreement," Yellen said in her remarks at the bilateral meeting. In a major reform of the international taxation system, about 140 countries, including India, have agreed to an overhaul of global tax norms to ensure that multinationals pay taxes wherever they operate and at a minimum of 15 per cent rate. However, the deal requires countries to remove all digital services tax and other similar measures and to commit not to introduce such measures in the future. Some significant .