wordpress blog stats
Connect with us

Hi, what are you looking for?

Government considering directly taxing non-resident Big Tech companies: Report

Social Media app icons

The Indian government is reportedly looking at directly taxing non-resident Big Tech companies with more than ₹20 crore in revenue, and more than 500,000 users, the Economic Times reported. Companies such as Google, Facebook and Twitter will have to pay direct taxes on profits earned locally. This could be included in the Direct Taxes Code. This report comes a few weeks after the French Senate approved a 3% digital tax on digital companies with a revenue of more than €25 million in France. Numerous other nations, especially within the EU, are considering similar digital taxes.

Significant Economic Presence concept gains momentum

According to the report, the proposed direct taxes are a part of the “Significant Economic Presence” (SEP) concept that India had introduced and implemented through the Finance Act, 2018. At the G20 Finance Ministers and Central Bank Governors’ Meeting at the G20 Summit, Finance Minister Nirmala Sitharaman had called for adoption of this concept to tax global digital companies. This concept considers the “evidence of their purposeful and sustained interaction with the economy of a country” irrespective of their physical presence in the country.

Big Tech companies have often been accused of paying little taxes locally despite earning significant revenue and profits in India.

Written By

Send me tips at aditi@medianama.com. Email for Signal/WhatsApp.

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.



Looking at the definition of health data, it is difficult to verify whether health IDs are covered by the Bill.


The accession to the Convention brings many advantages, but it could complicate the Brazilian stance at the BRICS and UN levels.


In light of the state's emerging digital healthcare apparatus, how does Clause 12 alter the consent and purpose limitation model?


The collective implication of leaving out ‘proportionality’ from Clause 12 is to provide very wide discretionary powers to the state.


The latest draft is also problematic for companies or service providers that have nothing to with children's data.

You May Also Like


Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...


135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...


Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...


By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Your email address:*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ