News Buzz

Governments to get more room to tax MNCs

The Organisation for Economic Co-operation and Development (OECD) has proposed to expand rights of governments across the world to tax multinationals, such as Google, Apple and Facebook, doing business within their borders by releasing a methodology for such taxation. 

This is a shot in the arm for India, which has proposed its own regulations on taxation of digital companies. The government has already come up with an SEP framework whereby it can tax digital companies in India, even if they don’t have a permanent establishment. This implies that even companies which do not have any employees or office in India can be taxed.