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India’s Digital Tax to be Phased Out Under Deal Struck With U.S.

Nov. 24, 2021, 3:26 PM

India says it has reached an agreement with the U.S. to end its 2% digital tax, known as the equalization levy, when a new global tax agreement comes into effect.

The terms of the U.S.-India agreement, announced Wednesday by the Indian government, largely match agreements struck between the U.S. and Austria, France, Italy, Spain, and the U.K. in October.

The U.S. government, in its own press release, said: “This compromise represents a pragmatic solution” that allows the countries to focus on the successful implementation of the OECD deal, “and allows for the termination of trade measures adopted ...

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