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India may have to withdraw digital services tax or the equalisation levy and give a commitment not to introduce such measures in the future if the global minimum tax deal comes through. In a major reform of the international tax system, 136 countries, including India, have agreed to an overhaul of global tax norms to ensure that multinationals pay taxes wherever they operate

The deal has been supported by 136 countries including India

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Global talks have forged a deal on changes in how multinational companies are taxed

In a major development, 136 countries worldwide have agreed on a tentative deal that would make changes to how multinational companies are taxed.

Parties to the deal include all nations in the Group of 20, European Union and OECD

A vast overhaul of corporate taxation has won support from 136 countries, as nations resolved key differences over a global minimum rate and an end to new digital taxes that the United States has deemed discriminatory.

Conceding ground, India also settled for a re-allocation of only 25 per cent of non-routine profits of these entities above a 10-per cent margin, as against its stand for at least 30 per cent re-allocation, leaving little for New Delhi to gain.

It will also have to make a commitment that it will not introduce such measures in the future once the global minimum tax deal comes through

The OECD-shepherded deal still faces sign-off from the G20.