India has agreed to a pathbreaking international framework with 129 other countries for taxing multinationals that could impact its ability to tax them and have the potential to douse trade wars over taxing tech giants.
India and the other countries issued a joint statement on Thursday affirming support for the proposed framework which has at its core a global minimum corporate tax of 15% and makes way for countries to tax multinational enterprises (MNEs), especially tech giants like Google, Facebook and Amazon, on their earnings there.
“It would re-allocate some taxing rights over MNEs from their home countries to the markets where they have business activities and earn profits, regardless of whether firms have a physical presence there,” said the Organisation for Economic Cooperation and Development, which coordinated the development of the plan. It “will ensure a fairer distribution of profits and taxing rights among countries with respect to the largest MNEs, including digital companies”, the OECD said.
India and the administration of President Joe Biden are embroiled in a dispute over New Delhi imposing a 2% tax on earnings in the country by foreign technology and e-commerce companies like Amazon, Facebook and Google. The Biden administration retaliated with a threat to raise import duties on a range of imports, from prawns and Basmati rice to furniture and jewellery, but kept it in abeyance hoping the new global tax framework could resolve it.
Bipartisan law introduced to protect ‘dreamers’
Lalit K Jha
A group of US lawmakers has introduced a bipartisan bill that aims to provide a pathway to permanent residency to individuals brought to America as dependents of long-term non-immigrant visa holders, a move which will benefit several Indian children and youngsters facing self-deportation when they turn 21. The America’s CHILDREN Act was introduced in the House of Representatives by lawmakers Deborah Ross, Mariannette Miller-Meeks, Raja Krishnamoorthi and Young Kim on Thursday.
The bill aims to protect Documented Dreamers, who are dependents of long-term nonimmigrant visa holders, from ageing out of the system when they turn 21, forcing them to self-deport.