A collection of 136 countries, including the G-20 member nations and the Organization for Economic Cooperation and Development, have agreed on the OECD-G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) after months of negotiations. This consensus is a landmark development towards addressing the challenges due to digitalization in market jurisdictions from the taxation standpoint. This proposal works on two pillars out of which Pillar 1 deals with fairer profit allocation to the market jurisdictions regardless of the physical presence of the entities there for which a multilateral convention can be implemented from 2023 whereas Pillar 2 has introduced a global minimum tax of 15 percent. Please refer to a statement released by OECD here and the related brochure here. We are looking to host a session with Mr Rashmi Ranjan Das, Joint Secretary, Central Board of Direct Taxes, Ministry of Finance to discuss India’s possible position on the tax deal and a way ahead for US multinational companies operating in India. In this regards we invite you to share your views / questions / suggestions which we can share with Mr Das and get his view during the session.
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