Exclusive-India to push G20 to raise share of taxes on firms where they earn 'excess profit' - sources

investing.com:

By Shivangi Acharya, Sarita Chaganti Singh and Nikunj Ohri

NEW DELHI (Reuters) — India will push its Group of 20 partners at a meeting it is hosting to support its proposal to raise the share of taxes multinational companies pay to countries where they earn «excess profits», government officials said.

India's proposal, which has not been previously reported, could temper optimism among G20 members such as Australia and Japan that the meeting of finance ministers and central bankers in Gujarat would make progress on a long-awaited overhaul of global corporate taxation.

More than 140 countries were supposed to start implementing next year a 2021 deal overhauling decades-old rules on how governments tax multinationals. The present rules are widely considered outdated as digital giants like Apple (NASDAQ:AAPL) or Amazon (NASDAQ:AMZN) can book profits in low-tax countries.

The deal, pushed by the U.S., would levy a minimum 15% tax on large global firms, plus an additional 25% tax on «excess profits», as defined by the Organisation for Economic Cooperation and Development (OECD).

But several countries have concerns about the multilateral treaty underpinning a major element of the plan, and some analysts say the overhaul is at risk of collapse.

«India has made suggestions to get its due share of taxing rights on excess profits of multinational companies,» one official said. The suggestions have been made to the OECD and will be discussed «extensively» during the G20 meeting on Monday and Tuesday, the official said.

Three officials, who asked not to be named as discussions with the OECD were ongoing and the G20 meeting had not begun, said India wants significant increases in the tax paid in countries where the firms do business.