Sunday, 22 May, 2022
HomeEconomyIndia very close to finalising details on global minimum tax, Nirmala Sitharaman...

India very close to finalising details on global minimum tax, Nirmala Sitharaman says

In July, 130 countries had agreed to an overhaul of global tax norms to ensure that multinationals pay taxes wherever they operate and at a minimum 15% rate.

Text Size:

New Delhi: Finance Minister Nirmala Sitharaman on Wednesday said India is “very close” to arriving at the specifics of the two-pillar taxation proposition at the G20 and is in the last stage of finalising the details.

A total of 130 countries had in July agreed to an overhaul of global tax norms to ensure that multinationals pay taxes wherever they operate and at a minimum 15% rate. The Finance Ministry had then said that some significant issues including share of profit allocation and scope of subject to tax rules are yet to be addressed and a ‘consensus agreement’ is expected by October after working out the technical details of the proposal.

The proposed two-pillar solution consists of two components – Pillar One which is about reallocation of an additional share of profit to the market jurisdictions and Pillar Two consisting of minimum tax and subject to tax rules.

Speaking at the ICRIER’s Annual International G20 Conference, Sitharaman said the two-pillar solution of the international taxation issue will reach an advanced implementation stage which India will have to pilot.

“At this stage, we are very close to arriving at something in terms of the specifics of the two-pillar proposition. We already had a conversation and agreed to a framework… We are in the last stages of finalising the details. So I won’t think it is time appropriate for me to spell the details of what we are agreeing on but these are the things on which the conversation is ongoing,” Sitharaman said.

The finance ministers of G-20 countries are scheduled to meet on October 13 in Washington.


Also read: What is global minimum tax 130 countries agreed to be part of & why it’s important for India


 

Subscribe to our channels on YouTube & Telegram

Why news media is in crisis & How you can fix it

India needs free, fair, non-hyphenated and questioning journalism even more as it faces multiple crises.

But the news media is in a crisis of its own. There have been brutal layoffs and pay-cuts. The best of journalism is shrinking, yielding to crude prime-time spectacle.

ThePrint has the finest young reporters, columnists and editors working for it. Sustaining journalism of this quality needs smart and thinking people like you to pay for it. Whether you live in India or overseas, you can do it here.

Support Our Journalism

Most Popular

×