India to evaluate benefits of OECD's global tax deal post US walkout: Finance Secretary

India volition measure the payment of joining the OECD's planetary taxation woody arsenic the US deciding to retreat from specified a planetary pact has made it "impractical to implement", Finance Secretary Tuhin Kanta Pandey said connected Tuesday.

US President Donald Trump connected January 20 successful a Presidential memorandum had said that the "Global Tax Deal person nary unit oregon effect wrong the United States", frankincense nullifying the advancement made truthful acold by the Organisation for Economic Cooperation and Development (OECD) to bring 140 countries connected the aforesaid level to levy a minimum 15 per cent taxation connected profits of multinational corporates.

To a question connected what would beryllium India's basal connected the planetary taxation pact, Pandey said the US exit has added a batch of uncertainty and if the United States is not joining it past specified a pact doesn't enactment out.

Pandey, successful a post-Budget enactment of Assocham, said the taxation woody is simply a multilateral attack wherever the US is overmuch integrally needed.

"If the US has present said that it is walking retired of it, past evidently it would beryllium impractical to instrumentality the full thing. We had immoderate reservations already recorded, but we had broadly gone on with the statement with immoderate reservations.

"We person not enacted immoderate legislative measures. Some countries person already... If the US withdraws from this process, past I deliberation we volition person to measure what payment it volition have," Pandey told reporters here. In 2021, astir 140 countries signed the OECD's planetary taxation deal.

The two-pillar solution aimed to code the "race to the bottom" attack of planetary taxation contention and discourage cross-border taxation avoidance by firms. Pillar 1 aims to reallocate the residual profits of ample multinationals from their location countries to jurisdictions wherever they make revenue, and Pillar 2 establishes a 15 per cent planetary minimum firm tax.

Around 50 jurisdictions person already adopted oregon made important strides towards adoption of GloBE rules. These jurisdictions volition person to present undertake a people correction to set to the caller realities.

OECD's pillar 2 inaugural sets a minimum taxation complaint of 15 per cent for each state that is signatory to it. There is simply a interest that the US home taxation rules mightiness struggle with this caller planetary minimum tax.

One of the concerns that the US has is that immoderate of their companies mightiness extremity up paying taxation doubly connected the aforesaid income. Another contented is that the caller rules mightiness alteration however taxes are calculated, perchance expanding the load connected US companies with operations successful different countries.