Global tax deal will get tech firms to pay up more—but here’s India’s challenge

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Leaders of G20 nations are set to meet next month in Rome to finalize a landmark deal to overhaul the global corporate tax landscape. Large technology firms could be hurt in particular, having saved tax for long by exploiting loopholes in the existing framework. But so will countries such as India that had already found ways to tax such entities and will now have to forgo that revenue.

If the proposal goes through, multinational enterprises (MNEs) will no longer be able to shift tax liabilities away from their key markets by setting up offices elsewhere. The deal also seeks to put in place a global minimum corporate tax rate of 15% to ensure that MNEs pay at least that minimum, even when they operate in low-tax jurisdictions.

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Effective corporate tax exceeds 15% in most G20 nations

This puts the spotlight on potential gainers and losers from the…

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