Global minimum tax may impact India’s special rate on manufacturing companies

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The US proposal to raise the global corporate tax rate from 21% to 28% may face resistance from countries that are unwilling to give up their advantage and compete with America on its terms

Topics
global tax treaty | OECD countries Taxation | BEPS tax

Global Minimum Corporate Tax: There is a lot of noise around the Global Minimum Tax, with the United States pushing for its imposition, finding support from the IMF and some advanced countries. However, the tax may affect developing countries like India, depending on the agreed rate.

The tax is part of Pillar 2 of the Base Erosion and Profit Sharing (BEPS) framework of the Organization for Economic Co-operation and Development (OECD). Of all the discussions in the BEPS framework, the primary U.S. interest is in Pillar 2, as it aligns with the recent…




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First published: Wednesday, April 14, 2021. 2:47 PM IST

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