Nirmala Sitharaman is going to raise the corporate tax..?

Times of india has reported that an important announcement on the minimum corporate tax is likely to be made in the context of what announcements may be made in the budget. The international minimum corporate tax regime called Pillar 2 was announced a few years ago with the approval of the Organization for Economic Co-operation and Development and the G20 countries. Not yet implemented in India. Generally, companies operating in one country reinvest large amounts of their profits in another country for tax benefits. Through this, those companies are also involved in tax evasion. Therefore, the leaders of the G20 countries have been insisting that a new procedure should be created to prevent tax evasion by companies and to prevent the black money earned from investing in other countries and making large profits.
 Accordingly, at the meeting of G20 countries held a few years ago, it was decided to impose a minimum corporate tax on business companies in all countries. In other words, it was decided that international corporates should pay at least 15 percent tax in all countries. As a result, it was said that international companies will compete in low-tax countries and invest less. This minimum corporate taxation regime is said to apply to multinational companies with an annual turnover of 750 million euros.
This will require these companies to pay minimum taxes in the countries where they can operate. It is said that if tax is collected less than 15% in those countries then a top-up tax system will be implemented there. Already the european union countries, England, Switzerland, and singapore have announced that they will comply with this procedure. india, China, and the US have not yet expressed their stance on its implementation. It is said that Finance minister Nirmala Sitharaman will announce the minimum corporate tax rate in the upcoming budget. There are reports that the central government may add a new section to the existing Income Tax Act or release a new draft to get everyone's views.
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Sowmiya Sriram

18/07/2024 01:14 PM