India is aiming to impose taxes on the income generated by Netflix Inc. from its streaming services within the country. This move is in line with the government’s efforts to ensure that digital platforms and streaming services are subject to taxation.
According to a draft order, tax authorities in India have assigned an income of approximately 550 million rupees to Netflix’s Indian permanent establishment (PE) for the assessment year 2021-22. The authorities argue that Netflix had employees and infrastructure from its parent company on secondment in India to support its streaming services, which establishes a PE and tax liability, as reported by the publication.
This development marks the first instance of India imposing taxes on foreign digital companies that offer e-commerce services to Indian consumers. Despite a request for comment from Reuters, Netflix has not responded at the time of this report.
