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मार्केट कमेटी सचिव सुल्तान सिंह की शिकायत पर सोनाली फोगाट व उनके साथियों के खिलाफ भारतीय दंड संहिता की धारा 147, 149, 332, 353, 186 और 506 के तहत मामला दर्ज कियानोएडा: पिछले 24 घंटों में कोरोना के 51 नए मामले आए सामने, कुल मामले हुए 609उत्तराखंड: पिछले 24 घंटे में आए कोरोना के 16 नए केस, कुल पॉजिटव मामले हुए 1215सोनाली फोगाट के थप्पड़ और चप्पल का मामला:सुभाष बराला ने कहा पूरे मामले में जांच के बाद ही स्थिति साफ होगीरणदीप सिंह सुरजेवाला ने भाजपा नेत्री सोनाली फोगाट के वायरल वीडियो पर भाजपा को आड़े हाथों लियामेरे से बंदूक की नोक पर माफीनामा जबरदस्ती लिखवाया गया:सुल्तान सिंह,सचिव मार्केट कमेटीअधिकारी ने मेरे साथ छेड़छाड़ की:सोनाली फौगाटक्या सरकारी नौकरी करना अब अपराध है?: सुरजेवाला

ET EDIT-Taxation of Digital Titans: New Dawn OECD proposal is welcome for companies, too

October 11, 2019 05:46 AM


Taxation of Digital Titans: New Dawn
OECD proposal is welcome for companies, too
The proposal by the Organisation for Economic Cooperation and Development (OECD) to overhaul tax rules to make the world’s digital giants pay their fair share of tax — and in those markets where they make profits — is welcome. It is to be presented to G20 finance ministers next week. Although additional revenues may not accrue immediately, the OECD’s proposed nexus rule would benefit countries like India in the long run. It would also boost the concerted global move towards ending base erosion and profit shifting. The very fact that taxation is local while the conduct of business is global leaves scope for arbitrage. Taxation, too, must become global and profits assigned to each jurisdiction in proportion with its contribution to the generation of those profits. The current OECD move is a step in that direction.

The proposed new profit allocation rules too are logical. The first step would be to determine the MNC group’s actual profits. The next step is to compute the group’s routine profits in a country based on existing arm’s-length principles, as if the transaction is with an unrelated company. If total profits exceed the sum of such nationally attributable profits, the question is how to allocate the balance amount of non-routine profit. Here, due weight would have to be given to trade intangibles and where these were generated. Variables such as sales would determine how much of the non-routine profit would accrue to an eligible market jurisdiction such as India. Rightly, OECD has also proposed legally binding and effective dispute prevention and resolution mechanisms to resolve disputes between a country and the taxpayer.

India now charges a levy on online advertising payments to foreign entities without a permanent establishment (PE) here, the so-called equalisation levy. Countries such as France and the UK levy domestic digital sales taxes, but at a lower rate than India’s levy. A global consensus would obviate the need for countries to take unilateral measures on taxation of the digital economy, and produce tax certainty for digital companies

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