US and India Extend Agreement on Tax Transition to OECD-G20 Framework
The United States and India have announced an extension of their agreement on the transition from India’s Equalization Levy to a new multilateral tax solution, in line with the OECD-G20 Inclusive Framework.
This announcement builds on the historic agreement reached on October 8, 2021, where over 130 countries within the G20/OECD Inclusive Framework agreed to a two-pillar package of reforms to the international tax system.
On November 24, 2021, the US and India released a joint statement outlining the terms of their political compromise. This agreement focused on transitioning from India’s existing Equalization Levy to the newly proposed multilateral solution while maintaining ongoing constructive dialogue.
Today’s extension of this political compromise, effective through June 30, 2024, reflects the continued multilateral negotiations within the G20/OECD Inclusive Framework and aligns with the updated timeline of the Inclusive Framework.
Source: treasury.gov
