Taxation in digital economy, making way legally

Digitalization of the global economy has happened at a tremendous pace and a large scale, permeating almost all areas of society. However, emergence of new business models have made it harder to tax businesses possessing a digitalized value chain. Conventional source allocation rules related to brick and mortar structures are not apt for the digital … More Taxation in digital economy, making way legally

Developments in International Tax: An update and its impact

OECD proposes changes to be incorporated in the 2017 update to the OECD Model Tax Treaty  The Organisation for Economic Co-operation and Development (OECD) on 11 July 2017 released the draft contents of the update to the OECD Model Tax Convention (the 2017 update). Among a number of other proposals, the 2017 update contains changes … More Developments in International Tax: An update and its impact

The Multilateral Instrument and the future of bilateral tax treaties

Tax treaties are based on a set of common principles designed to eliminate double taxation that may occur in the case of cross-border trade and investments. The current network of bilateral tax treaties dates back to the 1920s and the first Model Tax Convention developed by the League of Nations. The Organisation for Economic Co-operation … More The Multilateral Instrument and the future of bilateral tax treaties

Budget 2017: what international tax may have in store for you!

The year 2016 witnessed a rapid movement of the OECD-G20 BEPS project to the implementation phase, leaving a fundamentally changed landscape in its wake. Now that all the key instruments for BEPS implementation have been released by the OECD, countries are legislating and/or providing more clarity on how they will implement BEPS measures so that … More Budget 2017: what international tax may have in store for you!

Budget 2016 – what does it entail from BEPS perspective

In 2015, there were exceptional changes in the global tax landscape — Base Erosion and Profit Shifting (BEPS) discussion drafts turned into final recommendations with many jurisdictions already legislating on a unilateral basis in anticipation of final recommendations. Across the globe, new and sometimes highly novel national legislation was released to address BEPS challenges. The … More Budget 2016 – what does it entail from BEPS perspective

Place of Effective Management (POEM): striking the right balance

Different countries may have different ways in which they choose to set the jurisdiction for tax under the residence principle. However, there is a degree of consensus on the basic principle that there should be a fairly strong economic nexus with that country. Two basic approaches are used in establishing a personal jurisdictional connection for … More Place of Effective Management (POEM): striking the right balance

CBDT roadmap for phasing out tax exemptions

The Finance Minister, in his Union Budget 2015 speech, had announced the Government’s intention to reduce the corporate tax rate from 30% to 25% over the next four years, and phase out or rationalize various tax incentives. In November 2015, the Central Board of Direct Taxes (CBDT) released for public comments a draft proposal to … More CBDT roadmap for phasing out tax exemptions