Finance Minister Nirmala Sitharaman said on Wednesday that India was on the verge of finalizing the details of the two-pillar tax plan at the G-20 forum.
Addressing ICRIER’s annual International G-20 Conference, he said India was “very close” in correcting the details of the proposed taxation system.
In July, 130 countries reached a unanimous decision to amend global tax rules to allow multinational corporations to pay at least 15 percent tax, regardless of where they operate.
However, the Finance Ministry had said at the time that it had not yet looked at some key aspects such as the role of profit allocation and the scope subject to tax rules.
The proposed two-pillar tax proposal consists of two components – Pillar One, which redistributes additional profits to market jurisdictions and Pillar Two subject to minimum tax and tax rules.
Mrs. during the conference.
The finance ministers of the G-20 countries are scheduled to meet in Washington on October 13.
The finance minister added that India was looking at identifying gaps or “vacuums” in international policy coordination, including strengthening the performance of institutions such as the International Monetary Fund (IMF) and the Financial Action Task Force (FATF) and the IMF.
“We are working to identify vacuums in international policy coordination.
These could be in the area of creating flexibility or reforming long-awaited systems or creating new effective global organizations or mandating, achieving and strengthening the mandate of FATF and the IMF, ”he said.