With G24 backing, India to battle it out with US, UK to tax digital firms

The OECD report on the subject will be finalised in 2020. India has the backing of 28 countries of G24

India will press for widening the scope of permanent establishment (PE) to tax digital enterprises such as Google, Facebook, Microsoft, and Netflix at the Organisation for Economic Co-operation and Development (OECD) Base Erosion and Profit Shifting (BEPS) Inclusive Framework meeting in June. 

With G24 backing, it will fight it out with the US and the UK  to push through its ‘significant economic presence’ proposal at the OECD, as 128 counties sit together to put in place a multilateral instrument to bring these companies into the tax net.

In its representation, India has pitched for ‘significant economic presence’ principle,  arguing that