Global tax deal: Impact analysis done, govt may talk on Pillar 2 in Budget

The Multilateral Convention (MLC) for Pillar 1 of the global tax reform deal is unlikely to be signed by the June 30 deadline, but India may announce its Pillar 2 roadmap in the upcoming Budget, experts say. \r

The 2021 agreement, brokered by the OECD, aims to reform corporate taxes by reallocating taxing rights and introducing a 15% global minimum tax rate. While over 30 countries, including the UK and Japan, will implement Pillar 2 from 2024, major nations like the USA and China have yet to ratify the deal. \r

India’s Equalisation Levy on e-commerce services has been extended to June 30, 2024, amid uncertainties over the MLC's progress, with the levy potentially continuing longer.