Biden levy: IT, pharma cos operating from SEZs fear jump in tax outgo
Tax experts say several companies are going back to the drawing board and are looking to tweak their holding structures fearing the new levies in the US.
Synopsis
As per the plan, the Biden administration is looking to slap a “minimum tax” on global profit pools of multinationals that pay less than a certain percentage. This would essentially mean that any company that doesn’t pay at least 28% tax on their profits in any country will face additional levies in the US.
The Biden administration’s plan to introduce new levies on multinationals that undertake tax planning is set to impact top Indian information technology (IT) and pharmaceutical companies that have a presence in the US.
As per the plan, the Biden administration is looking to slap a “minimum tax” on global profit pools of multinationals that pay less than a certain percentage.
This would essentially mean that any company that doesn’t pay at
