What is Google Tax?

 The term "Google Tax" refers to different taxation policies in various countries aimed at taxing digital services and multinational corporations that generate revenue in a country without having a significant physical presence there. It is officially known as the Equalization Levy in India and the Digital Services Tax (DST) in many other countries....!!

                                       

Google Tax in India (Equalization Levy)

India introduced the Equalization Levy in 2016, targeting online advertising revenue earned by foreign companies. It was later expanded in 2020 to cover e-commerce transactions.

✔ Applicability:

Initially applied to online advertisements and digital marketing services provided by foreign companies like Google, Facebook, and Amazon.

Later extended to e-commerce operators that earn revenue from Indian customers, even without a physical office in India.

✔ Rate:

6% on online advertising services

2% on e-commerce transactions (on revenue generated from Indian users)

Google Tax in Other Countries

Several nations have introduced Digital Services Tax (DST) targeting tech giants like Google, Apple, Facebook, and Amazon (GAFA):

UK – 2% tax on revenue from digital services.

France – 3% tax on digital services revenue.

EU Discussions – The EU has been working on a unified digital tax for all member states.

Why is Google Tax Controversial?

✔ Big Tech Opposition – Companies argue that such taxes are unfair and lead to double taxation.

✔ Trade Disputes – The US has opposed these taxes, considering them discriminatory against American firms.

✔ OECD Global Tax Plan – Efforts are being made to create a global digital tax framework to replace country-specific taxes.