Many countries have introduced digital services taxes that apply to only very large multinational groups, while other countries’ digital taxes apply to a much wider range of businesses. India’s equalisation levy has an extremely low revenue threshold and for the time being is likely to affect more multinational businesses than any other digital services tax.
Companies hire local talent in India, Poland, Malaysia and other popular target countries to save money and create efficiencies. This posts describes three popular offshoring models, including shared service centres, technology hubs and joint ventures. It also addresses some compliance-related concerns that apply to all three options.
India has instituted key reforms to ease the tax burden on start-ups and make it easier for investors to contribute to their success. These changes are part of a larger plan to create jobs and further elevate the country's rising economic stature.