Direct Tax Summit

Maulik Doshi, Deputy Managing Director, Transfer Pricing, talks about the key challenges of Taxation on the Digital Economy while providing an overview of the Organization for Economic Co-operation and Development (OECD) approach concerning Base Erosion and Profit Shifting (BEPS) Pillar 1 and Pillar 2.

As we all know, today's international corporate tax rules are not fit for the on-ground realities of the modern global economy as it only captures business models that can profit from digital services in a country (without being physically present). Based on the recommendations of the OECD, various countries have taken several unilateral measures in their local laws. However, globally the main aim is to achieve an international consensus-based solution. Pillar 1 and 2 is the outcome of the work of the OECD for the last decade to get such consensus from various jurisdiction.

Maulik, in his presentation, has captured the key challenges to the Taxation of the Digital Economy under the current international tax laws and its solution in the form of Pillar 1 and 2 provisions. He has also covered the roadmap on the implementation of Pillar 1 and 2 as well as its impact on the cross-board.

For more details on the topic, please refer to our presentation on 'Taxation of the Digital Economy.'