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India announces its first ever digital tax

Mayo, 31, 2023 Hi-network.com
The Indian government has presented the Union Budget, which included the announcement of India's digital tax, called the equalisation levy (EQL). The EQL was proposed in March by a government-appointed panel.The EQL taxes payments to foreign firms for online advertisements, provided that these firms don't have a permanent establishment in India. The reasoning behind the tax is that it will 'neutralise the advantage foreign e-commerce firms, having no permanent presence in India, enjoy over India-based local competitors,' thereby mainly targeting digital multinationals, such as Google and Facebook. The EQL will come into effect from 1 June. 

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