OECD: Submission on Pillar One Amount A: Tax Base Determination

Terms of use

Terms of Use

The use of this site and the content contained therein is governed by the Terms of Use. When you use this site you acknowledge that you have read the Terms of Use and that you accept and will be bound by the terms hereof and such terms as may be modified from time to time.

All text, graphics, audio, design and other works on the site are the copyrighted works of nasscom unless otherwise indicated. All rights reserved.
Content on the site is for personal use only and may be downloaded provided the material is kept intact and there is no violation of the copyrights, trademarks, and other proprietary rights. Any alteration of the material or use of the material contained in the site for any other purpose is a violation of the copyright of nasscom and / or its affiliates or associates or of its third-party information providers. This material cannot be copied, reproduced, republished, uploaded, posted, transmitted or distributed in any way for non-personal use without obtaining the prior permission from nasscom.
The nasscom Members login is for the reference of only registered nasscom Member Companies.
nasscom reserves the right to modify the terms of use of any service without any liability. nasscom reserves the right to take all measures necessary to prevent access to any service or termination of service if the terms of use are not complied with or are contravened or there is any violation of copyright, trademark or other proprietary right.
From time to time nasscom may supplement these terms of use with additional terms pertaining to specific content (additional terms). Such additional terms are hereby incorporated by reference into these Terms of Use.

Disclaimer

The Company information provided on the nasscom web site is as per data collected by companies. nasscom is not liable on the authenticity of such data.
nasscom has exercised due diligence in checking the correctness and authenticity of the information contained in the site, but nasscom or any of its affiliates or associates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this site. The information from or through this site is provided "as is" and all warranties express or implied of any kind, regarding any matter pertaining to any service or channel, including without limitation the implied warranties of merchantability, fitness for a particular purpose, and non-infringement are disclaimed. nasscom and its affiliates and associates shall not be liable, at any time, for any failure of performance, error, omission, interruption, deletion, defect, delay in operation or transmission, computer virus, communications line failure, theft or destruction or unauthorised access to, alteration of, or use of information contained on the site. No representations, warranties or guarantees whatsoever are made as to the accuracy, adequacy, reliability, completeness, suitability or applicability of the information to a particular situation.
nasscom or its affiliates or associates or its employees do not provide any judgments or warranty in respect of the authenticity or correctness of the content of other services or sites to which links are provided. A link to another service or site is not an endorsement of any products or services on such site or the site.
The content provided is for information purposes alone and does not substitute for specific advice whether investment, legal, taxation or otherwise. nasscom disclaims all liability for damages caused by use of content on the site.
All responsibility and liability for any damages caused by downloading of any data is disclaimed.
nasscom reserves the right to modify, suspend / cancel, or discontinue any or all sections, or service at any time without notice.

For any grievances under the Information Technology Act 2000, please get in touch with Grievance Officer, Mr. Anirban Mandal at data-query@nasscom.in.

New

See all

No notification found.

OECD: Submission on Pillar One Amount A: Tax Base Determination

Tejasvi

@tejasvi

March 7, 2022

Public Policy

230

The OECD/G20 Inclusive Framework on BEPS (Inclusive Framework) has been working to develop a consensus based solution to address tax challenges arising out of digitalisation of the economy.

Amount A of Pillar One has been developed as part of the solution. It introduces a new taxing right over a portion of the profit of large and highly profitable enterprises for jurisdictions in which goods or services are supplied or consumers are located. In this regard, the OECD released e consultation paper consisting of draft Model Rules for tax base determination.

Based on inputs from Industry, NASSCOM made a detailed submission to the OECD and MoF on March 4, 2022. As part of our submission, we have requested that an opportunity be provided to stakeholders to provide inputs on unresolved issues / policy decisions/component which will be clarified in commentary once consensus has been reached. We have also requested OECD to:

Provide an exhaustive list of expenses that will be disallowed while calculating the financial accounting profit (or loss);
Include ‘profit shortfalls’ for carry forward purposes;
Include all kinds of divisions/demergers within the definition of Eligible Division (which is still under discussion);
The term “Eligible Business Combination” under Title 9 – Definitions should be expanded to include other possible forms of business combinations and not be restricted to the two options mentioned in the consultation paper (i.e., business combinations that involve either the transfer of a stand-alone entity (i.e., an entity that was not a member of another Group), or the transfer of all or substantially all the assets and liabilities of a Group);
Flexibility should be provided for use of other allocation keys for division of transferable losses. Such keys could include value of intangible assets, value of contracts, composition of workforce transferred (number of personnel X compensation); and
Keep the definition of ‘same or similar business’ broadly inclusive to cover cases where businesses are reasonably similar, ancillary, incidental, complementary or related to, or a reasonable extension, etc. of, the current business.

Our detailed submission to OECD and MoF is attached for your reference. For more information, reach out to tejasvi@nasscom.in and jayakumar@nasscom.in.

Disclaimer

That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.

Download Attachment

Tejasvi

Call for Inputs: TEC’s Draft Standa...

moncourt.ananya831