Why in news ?
India and majority members of OECD and G20 Inclusive Framework on Base Erosion & Profit Shifting adopted a high-level statement that outlines a consensus solution in a bid to address tax challenges that are arising from digitalisation of economy.
Pillar I of OECD and G20 two-pillar solutions of addressing tax challenge seeks to show a special purpose nexus rule and profit allocation formula to reallocate a part of super normal profits of largest and most profitable and multinational groups in market countries like India and China. The outcome will have quantitative benefits on India as it will ensure that India gets its fair share of corporate tax on earnings from market it provides to MNEs.
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