Global minimum tax is in final stages of finalization, Finance Minister Nirmala Sitharaman says
India is set to finalize the specifications of the two-pillar taxation proposal at the G-20 forum, Finance Minister Nirmala Sitharaman said on Wednesday.
Addressing ICRIER’s annual G-20 international conference, she said India is “very close” to refining the details of the proposed tax system.
By July, 130 countries had reached a consensus to revise global tax standards so that multinationals pay taxes at a minimum rate of 15%, regardless of where they do business.
However, the then Ministry of Finance said that some key aspects such as the inclusion of profit splitting and the extent of the tax rules had not yet been considered.
The proposed two-pillar tax proposal consists of two elements: the first pillar, which concerns the reallocation of an additional share of profits to market jurisdictions, and the second pillar, which consists of a minimum tax and is subject to tax rules. .
Ms Sitharaman told the conference that as India is in the final stages of finalizing details, it would not be appropriate to give details.
The finance ministers of the G-20 countries are due to meet on October 13 in Washington.
The finance minister further said that India is also considering identifying gaps or “gap areas” in international policy coordination, including enhancing the effectiveness of institutions such as the International Monetary Fund (IMF). ), the Financial Action Task Force (FATF) and the IMF.
“We are working to identify gaps in the coordination of international policies.
These could be in the area of building resilience or reforming long-awaited systems or in creating new effective global institutions or even in strengthening the mandate, scope and effectiveness of existing ones such than the FATF and also the IMF,” she said.
