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The Indian government plans to directly tax big tech companies on the profits they make locally. The center is currently considering an income threshold of 20 billion rupees and a user base of at least 500,000 users above which non-resident technology companies such as Facebook, Facebook and Twitter should pay direct taxes to government on the profits made locally.
the proposed taxes are part of the Significant Economic Presence (PES) which was introduced for the first time after the budget was tabled last year. The Central Council for Direct Taxes (CBDT) closely followed the introduction of the concept of PES, calling for suggestions, which set the rules of the taxation system last July.
The Indian government, in addition to levying taxes on large technology companies under the SEP, is also considering introducing the taxation regime in the Direct Tax Code, which aims to simplify the country's tax laws. direct.
The SEP will levy a tax of about 35% on large technology companies, which is similar to the tax paid by local businesses, the report noted.
The Indian government, Nirmala Sitharaman, urges the G20 countries to adopt the SEP as a concept to tax big technology companies and to cooperate closely with member countries. "Fugitive economic offenders".
This decision comes at a time when the European Union is considering levying a 3% tax on foreign technology companies for the profits they make locally.