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Global minimum tax in final stages: Nirmala Sitharaman

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Finance Minister Nirmala Sitharaman has said that the global minimum tax is in the final stages

Finance Minister Nirmala Sitharaman said on Wednesday that India is on the verge of finalizing the specifications of the two-pillar taxation proposal at the G20 Forum.

Addressing ICRIER’s annual international G-20 conference, he said India is “very close” towards fixing the details of the proposed taxation system.

In July, 130 countries agreed to overhaul global tax norms to allow multinationals to pay taxes at a minimum rate of 15 percent, regardless of where they operate.

However, at that time the Finance Ministry had said that some key aspects like inclusion of part of profit allocation and coming under the purview of tax rules are yet to be considered.

The proposed two-column tax proposal comprises two components – column one which is about re-allocation of additional share of profits in market jurisdiction and column two which involves minimum tax and is subject to tax rules.

Ms Sitharaman said during the conference that since India is in the final stages of finalizing the details, it would not be appropriate to give details.

The finance ministers of the G20 countries are scheduled to meet in Washington on 13 October.

The Finance Minister further said that India is also looking at identifying gaps or “vacuum areas” in international policy coordination, including strengthening the effectiveness of institutions such as the International Monetary Fund (IMF) and the Financial Action Task Force (FATF) and the IMF. includes doing.

“We are working towards identifying vacuum areas in international policy coordination.
These could be in the area of ​​building resilience or improving long-awaited systems or creating new effective global institutions or even strengthening the mandate, reach and effectiveness of existing ones such as the FATF and IMF,” she said.

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