India set to pitch for global framework to tax digital companies

The panel under BEPS - Taskforce on Digital Taxation - is expected to come up with a final report by 2020

After global recognition to its equalisation levy on online advertisements from Facebook, Google or Netflix imposed two years ago, India is set to pitch for an international tax measure to tax these companies that earn revenues from a large user base in the country.

The framework, technically called the multilateral instrument to implement tax-related measures (MLI) to prevent base erosion and profit shifting (BEPS), will avoid the need to amend individual bilateral treaties.

In an interim report - Tax challenges Arising from Digitalisation - released last week, the Organisation for Economic Co-operation and Development (OECD) suggested the use of interim