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Oct 14, 2020
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Global tax war ahead: After no consensus in OECD; Facebook, Google, Amazon, LinkedIn could face domestic taxes
Google, Facebook, Amazon, LinkedIn and Netflix could face larger domestic tax liability after OECD (Organisation for Economic Co-operation and Development) postponed a common tax framework for global economies, a move that will allow countries like India to go ahead with their own plans to tax the digital giants.
OECD was expected to come out with a common tax framework by December this year, now it's expected to do so mid-next year.
This could mean that most countries including India would implement their own plans rather than wait for OECD’s framework on how to tax digital giants.
India has already started partly taxing these global giants under equalisation levy and has also introduced significant economic presence (SEP) framework last year.
Global digital giants including Google, Facebook, Amazon, LinkedIn and Netflix could face larger domestic tax liability as OECD’s international collaboration that had hoped to create a consensus on how to tax these companies by December, now postponed it to mid-next year.
“India was only waiting for the OECD to give some guidance around how economies must tax these global giants. Now that no consensus seems to be emerging, most large economies would go ahead with their own domestic taxes and regulations,” said a person close to the government.
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