Perspective: Global Tax Reforms

In this episode of the Perspective Prog. based on Global Tax Reforms. After years of intensive negotiations to bring the international tax system into the 21st century, 136 countries have reached an agreement on the Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalisation of the Economy. This two-pillar solution will now be delivered to the G20 Finance Ministers meeting in Washington D.C. on 13 October and then to the G20 Leaders Summit in Rome at the end of this month. The global minimum tax agreement does not seek to eliminate tax competition but puts multilaterally agreed limitations on it. Under Pillar One of the agreements taxing rights on more than 125 billion US Dollars of profit are expected to be reallocated to market jurisdictions each year. Pillar Two of this agreement introduces a global minimum corporate tax rate at 15%. The new minimum tax rate will apply to companies with revenue above 750 million Euros and is estimated to generate around 150 billion US dollars in additional global tax revenues annually. Further benefits are also expected from the stabilisation of the international tax system and the increased tax certainty for taxpayers and tax administrations. Today we will discuss and analyse all aspects of this issue and understand it’s impact on India and other developing countries.

1. Subhomoy Bhattacharjee, Consulting Editor, The Business Standard
2. Neeru Ahuja, Chairperson, CII Core Group, BEPS
3. Prof. Sol Picciotto, Senior Fellow, ICDT, United Kingdom

Anchor: Vishal Dahiya

Producer: Amit Srivastav, Sagheer Ahmad