InvestorQ : Why is India now against the G7 Digital Tax proposed?
Sam Eswaran made post

Why is India now against the G7 Digital Tax proposed?

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Moii Chavate answered.
7 days ago
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It looks like the provisions of the G7 Digital Tax may not be fully acceptable to India due to the apparently unfavourable tax design. This new rule requires MNCs to pay taxes in the countries in which they operate. Under the new proposal, profitable multinationals with at least 10% profit margin will pay taxes in countries where they operate.

This could be quite tricky for India domiciled technology companies that derive most of their revenues from the US and Europe. India may lose out, according to tax experts, if the profit allocation is not equivalent to equalization levy prevailing today.

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