Top tech firms wait for confirmation before adjusting their taxes
Last updated on February 11th, 2022 at 05:52 am
Top tech firms do not want to risk big time when it comes to stop doing their taxes and hence they are choosing to play it safe. Firms like Google, Facebook, Twitter, Amazon, and Apple have decided to not go ahead with deferred tax property.
This means they will not be approving or capitalizing their account statements for another year to come till they come to terms with India’s stand on equalization levy, based on tax advisors.
As per Ajay Rotti, who is an accomplice with tax advisory agency Dhruva Advisors, “India has said that the 2% equalization levy it has collected from US multinationals will be adjusted against future tax liabilities of these companies.”
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The confusion began in November last year when the Indian government stated that it would modify the two% levy collected from the United States multinational opposition and convert it into future tax liabilities. This was supposed to be done sooner with time as clarity emerges on the OECD’s BEPS framework.
The experts in the matter believe that the best way to go ahead with the issue is by evolving the OECD. Post this, if they find that the federal government is still adamant about not introducing something round pillar one, it should work for SEP or different unilateral measures in the frame of the designated budget.
As per a tax advisor, these companies should ideally wait for a year ahead of going for any permanent measure. This will give them more clarity. “Many companies also want the Indian government to either refund or adjust the 6% equalization levy too,” asserted the expert.
