Indian government set to tax Netflix's domestic income: Reports

According to media reports, the Indian government is looking to tax Netflix Inc's domestic income. 

The move is the first time India will tax overseas digital companies.
The move is the first time India will tax overseas digital companies. Twitter/@steveraybsmith

In a draft order, the tax authorities attributed an income of about USD 6.73 million (INRR 55 crore) to Netflix's Indian permanent establishment (PE) in the assessment year 2021-22. 

Tax officials stated that a PE and tax liability was established as the US firm had some employees and infrastructure from the parent entity on secondment in India to support its streaming services, the Economic Times reported.

Therefore, Netflix is liable to have its income generated from the country assessed for tax, it was concluded.

The move is the first time India will tax overseas digital companies.

For Netflix, India is an important market as the country contributed the highest net subscriber additions to its global tally in 2022. This was driven by the launch of an aggressive pricing plan in December 2021, original Indian content and licensed movies.

Also read

Netflix responds to Indian legal notice over The Big Bang Theory

Kunal Nayyar's Big Bang theory character attracts legal troubles for Netflix

Author
CtoI News Desk
CtoI News Desk – CtoI

Singapore-headquartered online media company targeting Indian Diaspora across Singapore, US, UK, UAE and India. Connected to India covers developments around NRIs. Covers arts, political, sports, finance, entrepreneurship, business, movies, dramas, entertainment and other news for Indians living worldwide.

Comments
Poll

Which team do you think will win IPL 2023?

  • Chennai Super Kings
  • Royal Challengers Bangalore
  • Mumbai Indians
  • Gujarat Titans
  • Kolkata Knight Riders
  • Delhi Capitals
  • Sunrisers Hyderabad
  • Lucknow Super Giants
  • Royal Challengers Bangalore
  • Punjab Kings
Answer
Write your story

Contribute an Article

Learn more