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India Joins G20-OECD Tax Framework Deal

India joined the G20-OECD inclusive framework deal that seeks to reform international tax rules and ensure that multinational enterprises pay their fair share wherever they operate, the finance ministry said on Friday.

However, India will have to roll back the equalization levy that it imposes on companies such as Google, Amazon and Facebook when the global tax regime is implemented.

The OECD said signatories amounted to “130 countries and jurisdiction, representing more than 90% of global GDP.” Details of the regime and the implementation schedule will be drawn up in October, it said.

ET had reported last month that India favors a wider application of the law to ensure that the country won’t collect less under the proposed framework than it gets through the equalization levy.

“The principles underlying the solution vindicates India’s stand for a greater share of profits for the markets,” the finance ministry said. “Some significant issues including share of profit allocation and scope of subject to tax rules, remain open and need to be addressed,” it said.S-ET

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