Fri. Jul 10th, 2020

U.S. warns that India will be retaliated against by the United States if it continues to expand the scope of Google Tax

2 min read

Since 2016, India has levied taxes and fees dedicated to online advertising businesses such as Google and Facebook Inc., commonly known as Google taxes and its official name is called Equalisation levy tax.

The so-called Equalisation levy tax refers to the tax increase for multinational companies when they conduct business in India. The tax is only for multinational companies and does not include other taxes already paid.

To put it simply, this is the additional tax that is added to India’s original tax base, resulting in double or multiple taxations of multinational technology giants such as Google.

Now India is also preparing to expand the scope of the Equalisation levy tax and add the multinational e-commerce industry to the collection list, which looks like it is specifically aimed at Amazon.

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Although Trump has never given a good face to these technology companies in the United States, in the aspect of taxation and fines, Trump hopes that the United States companies’ will be protected.

India’s preparation to expand the scope of the balanced tax collection has also been shelled. Obviously Trump also believes that this is India’s way of generating income for American technology giants.

In the latest US trade barriers report, US government agencies said that India ’s digital trade has many problems, so the United States strongly recommends that India reconsider its policies.

US government agencies even made it clear in the trade barriers report that a balanced tax would increase the potential risk of Indian companies operating abroad for retaliation from their host countries.

Earlier India’s increased consumption tax has caused some multinational companies to increase the price of their products in India, but the consumption tax has not targeted foreign technology companies.