November 29 2021

India Issues Statement on Transitional Approach with United States on Equalization Levy

Source: IBFD Tax Research Platform News

India and the United States have agreed to apply the same terms under the Joint Statement issued by the United States, Austria, France, Italy, Spain and the United Kingdom to India's equalization levy and the corresponding trade action taken by the United States.

In a press release issued by India's Ministry of Finance, India noted that the interim period will be from 1 April 2022 until the implementation of Pillar 1 or 31 March 2024, whichever is earlier. India will remain in close contact with the United States to ensure that there is a common understanding of their commitments and that both countries will endeavour to resolve differences through constructive dialogue. The press release also noted that the final terms of the agreement will be finalized by 1 February 2022.