Twitter, Facebook, Google staring at higher tax bills under India IT rules

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Top digital companies do not have a presence or permanent establishment (PE) in India and hence don’t pay domestic taxes on their entire income.

Synopsis

Big Tech companies fear that appointing nodal officers, as mandated by India’s revised IT rules, will have a domino effect and result in 25-42% income tax.

Mumbai: As Twitter, Google and Facebook appoint nodal officers to comply with India’s new information technology (IT) rules, they could see their domestic tax bills jump from this year onward, said people with knowledge of the matter.

Top digital companies do not have a presence or permanent establishment (PE) in India and hence don’t pay domestic taxes on their entire income. The Indian government introduced the equalisation levy—6% on

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