G7 allows India to tax digital MNCs; government officials, experts feel this isn’t enough

The corporate tax deal reached by the Group of G7 developed nations may allow India to tax multinationals such as Google, Facebook, Twitter and Amazon, but tax experts feel that India must fight this pact tooth and nail to avoid getting short-changed.

Apart from a minimum global corporate tax, the G7 decided on how “market countries”, or countries where digital multinationals have a huge user base, can tax them.

The bloc has prescribed a formula for this even if the multinationals do not have a presence or permanent establishment in the country.