India sets threshold for significant economic presence

The Indian Finance Ministry has notified the threshold to determine the new tax nexus based on significant economic presence (SEP) to tax profits of non-resident companies.

The concept of SEP was introduced in 2018, with the intent of bringing income of non-residents operating in the digital space within the ambit of Indian tax. The Government has now prescribed the threshold as INR 20 million and 300,000 users in this regard.
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The notification will come into effect from April 1, 2022.