India and the United States have agreed a transitional approach to the implementation of pillar 1 and the phasing out of the 2% equalisation levy in India. The agreement is based on the terms agreed between the US and Austria, France, Italy, Spain and the UK for the removal of existing unilateral measures in return for the US ending retaliatory trade measures and is expected to provide for a credit for excess equalisation levy paid in the interim period against future amount A liabilities for those large groups in scope.
The Indian Ministry of Finance says that the agreement will be finalised by 1 February 2022 and is expected to apply from 1 April 2022 until implementation of pillar 1.
In a similar development, the US and Turkey have issued a joint statement on transitional arrangements for the move away from Turkey’s digital services tax.
India and the United States have agreed a transitional approach to the implementation of pillar 1 and the phasing out of the 2% equalisation levy in India. The agreement is based on the terms agreed between the US and Austria, France, Italy, Spain and the UK for the removal of existing unilateral measures in return for the US ending retaliatory trade measures and is expected to provide for a credit for excess equalisation levy paid in the interim period against future amount A liabilities for those large groups in scope.
The Indian Ministry of Finance says that the agreement will be finalised by 1 February 2022 and is expected to apply from 1 April 2022 until implementation of pillar 1.
In a similar development, the US and Turkey have issued a joint statement on transitional arrangements for the move away from Turkey’s digital services tax.
.jpg?sfvrsn=335a554c_0 "300 x 250 (MPU)")