Categories: U.S. Treasury

The United States and India Announce Extension of Agreement on the Transition from Existing Indian Equalization Levy to New Multilateral Solution Agreed by the OECD-G20 Inclusive Framework

WASHINGTON – On October 8, 2021, a historic agreement was reached between over 130 countries of the G20/OECD Inclusive Framework on a two Pillar package of reforms to the international tax framework.  

In support of that agreement, in a joint statement on November 24, 2021, the United States and India announced the terms of a political compromise on the transition from India’s existing Equalization Levy to the new multilateral solution and to continuing discussions on this matter through constructive dialogue. 

In light of the continuing multilateral negotiations at the G20/OECD Inclusive Framework, the United States and India have today announced an extension of the political compromise set forth in the November 24, 2021 joint statement through June 30, 2024, consistent with the revised Inclusive Framework timeline.

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