Safe Harbour Rules

A global reform of the taxation of corporate digital revenues is very unlikely if the United States continues backing a "safe harbour" plan which would allow firms to choose how to be taxed, European Union tax commissioner Paolo Gentiloni said on Tuesday.

Safe habour rules is an option provided to eligible taxpayers or transactions which relieves them from routine transfer pricing obligations.

Greater clarity on GAAR rules and issuance of safe harbour norms for transfer pricing were positive moves. The government established the National Investment and Manufacturing Zones and took decisions to kickstart stalled projects by opening up foreign direct investment in various sectors like telecom and defence.

The government will issue so-called safe harbour rules by April 2013, a set of provisions that under certain conditions would enable tax authorities to accept companies transfer pricing claims without further scrutiny, Finance Minister P Chidambaram said on Monday.

A global reform of the taxation of corporate digital revenues is very unlikely if the United States continues backing a "safe harbour" plan which would allow firms to choose how to be taxed, European Union tax commissioner Paolo Gentiloni said on Tuesday.

Safe habour rules is an option provided to eligible taxpayers or transactions which relieves them from routine transfer pricing obligations.

Greater clarity on GAAR rules and issuance of safe harbour norms for transfer pricing were positive moves. The government established the National Investment and Manufacturing Zones and took decisions to kickstart stalled projects by opening up foreign direct investment in various sectors like telecom and defence.

The government will issue so-called safe harbour rules by April 2013, a set of provisions that under certain conditions would enable tax authorities to accept companies transfer pricing claims without further scrutiny, Finance Minister P Chidambaram said on Monday.