Some of the Big Tech<\/a> companies are working to create additional structures or technology infrastructure that can potentially block certain jurisdiction-based content or advertising to avoid tax complications, they said.
Google<\/a>, Facebook<\/a>, Amazon, Apple and Twitter<\/a> are among the multinational companies that could see their advertising and content revenue being taxed in various locations due to these regulations. In some cases, these companies may be taxed in two or even three jurisdictions, tax experts said.
India, France and the UK have introduced unilateral measures to tax digital giants, meaning they have not been recognised by other countries and could run contrary to the international tax framework.
Take India’s equalisation levy<\/a>, for instance.
India charges 6% tax on any advertising revenue of multinational firms if the advertiser is based in the country. There is also a 2% equalisation levy even if the advertisers or multinationals are not based in India, but the advertisement is visible in India.
Tax experts said the question revolves around whether the tax is payable in countries where the advertiser is located or where the advertisements are reflected or visible.
“As of now, India collects taxes on both of these. However, with other countries such as the UK that levies DST (digital service tax) on business users or advertisers and these ELs (equalisation levies)\/ DSTs being non-creditable in the home jurisdiction, digital giants are set to see not only double but multi-layer taxation (payer-linked, access-linked and based on fiscal domicile) on the same transaction. That too, at gross revenue level, which increases the cost significantly for such tech businesses,” said Rahul Garg, managing partner at Asire Consulting LLP.
These digital taxes, which are outside the gamut of international taxation, cannot be set off against other domestic tax obligations. In taxation terminology, this means companies will not get a credit for these taxes in other countries.
“Not all digital levies are eligible for foreign tax credits. The Indian equalisation levy, for instance, is not governed by the tax treaties and hence not eligible for credit against home country taxes,” said Ajay Rotti, partner at Dhruva Advisors.
Singapore’s revenue authorities have permitted companies there to treat Indian EL as tax deductible expense, but companies will not get a credit for that.
“This essentially means that EL becomes a cost and companies will have to pay tax in their home country on entire profit, including the revenues on which tax has already been paid in India. This leads to double taxation,” Rotti added.
Twitter, Facebook, Google, Amazon, Apple and LinkedIn did not respond to ET’s queries.
If Rolls Royce, headquartered in the UK, advertises on the Facebook platform, but the content is visible in India too, India will claim that a 2% equalisation levy should apply on the transaction, while the UK will claim that DST should apply on the advertising.
Even after paying taxes in India and the UK, the company may have to end up coughing up corporate taxes in the country where it is located.
Some of the companies are looking to tweak some existing structures where domestic bots will block certain global advertising content, insiders said.
“This can be done easily as some of the large platforms already do this to avoid certain country-specific sensitive content. The only question is if doing so could lead to additional complications,” a senior lawyer who is advising a large digital company in India said.
Many companies have already started passing on these digital taxes to customers.
ET was the first to report on July 29 that Google was all set to pass on<\/a> India’s equalisation levy to all its clients whose advertisements are visible in the country, beginning October. This could also put pressure on other digital multinationals to follow in its footsteps.
<\/body>","next_sibling":[{"msid":85167407,"title":"9 underground cable theft cases reported between Mar 22-Aug 8 in HP's Shimla: BSNL","entity_type":"ARTICLE","link":"\/news\/9-underground-cable-theft-cases-reported-between-mar-22-aug-8-in-hps-shimla-bsnl\/85167407","category_name":null,"category_name_seo":"telecomnews"}],"related_content":[{"msid":"85154746","title":"big tech and trust","entity_type":"IMAGES","seopath":"news\/economy\/policy\/sword-of-double-taxation-hangs-on-big-tech-firms\/big-tech-and-trust","category_name":"Sword of double taxation hangs on Big Tech firms","synopsis":"Some of the Big Tech firms are working to create additional structures or technology that can potentially block certain jurisdiction-based content or advertising to avoid tax complications.","thumb":"https:\/\/etimg.etb2bimg.com\/thumb\/img-size-205502\/85154746.cms?width=150&height=112","link":"\/image\/economy\/policy\/sword-of-double-taxation-hangs-on-big-tech-firms\/big-tech-and-trust\/85154746"}],"msid":85167455,"entity_type":"ARTICLE","title":"Sword of double taxation hangs on Big Tech firms","synopsis":"Big Tech companies fear that India\u2019s equalisation levy combined with similar digital tax regulations in countries such as the UK and France will lead to double taxation, industry insiders say.","titleseo":"telecomnews\/sword-of-double-taxation-hangs-on-big-tech-firms","status":"ACTIVE","authors":[{"author_name":"Sachin Dave","author_link":"\/author\/479239123\/sachin-dave","author_image":"https:\/\/etimg.etb2bimg.com\/authorthumb\/479239123.cms?width=100&height=100","author_additional":{"thumbsize":true,"msid":479239123,"author_name":"Sachin Dave","author_seo_name":"sachin-dave","designation":"Senior Editor","agency":false}},{"author_name":"Anumeha Chaturvedi","author_link":"\/author\/479226491\/anumeha-chaturvedi","author_image":"https:\/\/etimg.etb2bimg.com\/authorthumb\/479226491.cms?width=100&height=100","author_additional":{"thumbsize":true,"msid":479226491,"author_name":"Anumeha Chaturvedi","author_seo_name":"anumeha-chaturvedi","designation":"Assistant Editor","agency":false}}],"analytics":{"comments":0,"views":498,"shares":0,"engagementtimems":2490000},"Alttitle":{"minfo":""},"artag":"ET Bureau","artdate":"2021-08-09 07:31:43","lastupd":"2021-08-09 07:32:28","breadcrumbTags":["Big Tech","Big Tech Tax","Twitter","Big Tech Companies","digital tax","facebook","google","equalisation levy","uk digital service tax","Internet"],"secinfo":{"seolocation":"telecomnews\/sword-of-double-taxation-hangs-on-big-tech-firms"}}" data-authors="[" sachin dave","anumeha chaturvedi"]" data-category-name="" data-category_id="" data-date="2021-08-09" data-index="article_1">
读到
新德里孟买|:
大型科技公司印度的恐惧平衡税结合具有类似数字的税收规定的国家如英国和售价将导致双重征税,据业内人士。
的一些大型科技股公司正在努力创建额外的结构或技术基础设施,可以屏蔽某些jurisdiction-based内容或广告为了避免税收并发症,他们说。
谷歌,脸谱网,亚马逊、苹果和推特跨国公司中,可以看到他们的广告和内容收入征税在不同地点由于这些规定。在某些情况下,这些公司在两个甚至三个司法管辖区可能被征税,税务专家说。
印度,法国和英国已经引入了单边措施,税收数码巨头,这意味着他们没有意识到其他国家,可能会违背国际税收框架。
把印度的平衡税为例。
印度对任何跨国公司的广告收入费用6%的税,如果广告商为基础。也有平衡征收2%的关税,即使广告商或跨国公司并不是建立在印度,但印度的广告是可见的。
税务专家表示,问题围绕税收是否支付广告客户所在国家或者广告反映或可见。
“到目前为止,印度收集这两个税。然而,与其他国家如英国征收的DST(数字服务税)业务用户或广告商和这些船(平衡征税)/数据的家中non-creditable管辖,数码巨头将不仅双多层税收(payer-linked access-linked和基于财政住所)在同一事务。总收入水平,也大大增加了成本这样的科技企业,“说拉胡尔Garg Asire咨询律师事务所的管理合伙人。
这些数字的税收,国际税收的范围之外,不能抵消其他国内纳税义务。在税收方面的术语,这意味着公司将不会为这些税收信用在其他国家。
“并不是所有的数字征收有资格获得外国税收抵免。印度平衡税,例如,不是由税务条约,因此不符合信贷与国内税收,“Ajay深受Dhruva Advisors合伙人说。
新加坡的税收当局允许公司将印度EL视为税收扣除费用,但是公司不会获得信贷。
“这基本上意味着EL成为成本和企业将不得不以整个利润在本国纳税,包括税收的收入已经在印度。这将导致双重征税,”深受补充道。
Twitter、Facebook、谷歌、亚马逊、苹果和LinkedIn等的查询没有回应。
如果劳斯莱斯,总部设在英国,广告在Facebook平台上,但其内容是可见的在印度,印度将声称平衡交易征收应当适用2%,而英国会声称DST在广告就应该申请了。
即使纳税在印度和英国,该公司可能不得不最终咳公司税的国家,它位于。
一些公司正在调整现有结构,国内机器人将屏蔽某些全球广告内容,内部人士说。
“可以轻松一些大型电子商务平台已经这样做,以避免某些特定国家的敏感内容。唯一的问题是如果这样做可能会导致额外的并发症,”一位资深律师建议在印度的一个大型数码公司说。
许多公司已经开始在这些数字税转嫁到消费者头上。
ET是第一个报告7月29日,谷歌都将转嫁印度的平衡税对所有客户的广告是可见的,10月开始。这也可以施压其他数字跨国公司可以追随它的脚步。
的一些大型科技股公司正在努力创建额外的结构或技术基础设施,可以屏蔽某些jurisdiction-based内容或广告为了避免税收并发症,他们说。
谷歌,脸谱网,亚马逊、苹果和推特跨国公司中,可以看到他们的广告和内容收入征税在不同地点由于这些规定。在某些情况下,这些公司在两个甚至三个司法管辖区可能被征税,税务专家说。
印度,法国和英国已经引入了单边措施,税收数码巨头,这意味着他们没有意识到其他国家,可能会违背国际税收框架。
把印度的平衡税为例。
印度对任何跨国公司的广告收入费用6%的税,如果广告商为基础。也有平衡征收2%的关税,即使广告商或跨国公司并不是建立在印度,但印度的广告是可见的。
税务专家表示,问题围绕税收是否支付广告客户所在国家或者广告反映或可见。
“到目前为止,印度收集这两个税。然而,与其他国家如英国征收的DST(数字服务税)业务用户或广告商和这些船(平衡征税)/数据的家中non-creditable管辖,数码巨头将不仅双多层税收(payer-linked access-linked和基于财政住所)在同一事务。总收入水平,也大大增加了成本这样的科技企业,“说拉胡尔Garg Asire咨询律师事务所的管理合伙人。
这些数字的税收,国际税收的范围之外,不能抵消其他国内纳税义务。在税收方面的术语,这意味着公司将不会为这些税收信用在其他国家。
“并不是所有的数字征收有资格获得外国税收抵免。印度平衡税,例如,不是由税务条约,因此不符合信贷与国内税收,“Ajay深受Dhruva Advisors合伙人说。
新加坡的税收当局允许公司将印度EL视为税收扣除费用,但是公司不会获得信贷。
“这基本上意味着EL成为成本和企业将不得不以整个利润在本国纳税,包括税收的收入已经在印度。这将导致双重征税,”深受补充道。
Twitter、Facebook、谷歌、亚马逊、苹果和LinkedIn等的查询没有回应。
如果劳斯莱斯,总部设在英国,广告在Facebook平台上,但其内容是可见的在印度,印度将声称平衡交易征收应当适用2%,而英国会声称DST在广告就应该申请了。
即使纳税在印度和英国,该公司可能不得不最终咳公司税的国家,它位于。
一些公司正在调整现有结构,国内机器人将屏蔽某些全球广告内容,内部人士说。
“可以轻松一些大型电子商务平台已经这样做,以避免某些特定国家的敏感内容。唯一的问题是如果这样做可能会导致额外的并发症,”一位资深律师建议在印度的一个大型数码公司说。
许多公司已经开始在这些数字税转嫁到消费者头上。
ET是第一个报告7月29日,谷歌都将转嫁印度的平衡税对所有客户的广告是可见的,10月开始。这也可以施压其他数字跨国公司可以追随它的脚步。
评论
现在评论 阅读评论(1)所有评论
找到这个评论进攻?
下面选择你的理由并单击submit按钮。这将提醒我们的版主采取行动