Equalization Levy Explained#
What is Equalization Levy?#
Equalization Levy is a tax on certain digital transactions to ensure fair taxation.
Applicability#
- Non-resident service providers
- Online advertising
- Data services
Rate and Threshold#
- 2% on B2B digital services
- 6% on online advertisement (effective 2022)
Exclusions#
- Non-digital services
- B2C transactions
Compliance#
- Non-resident to register
- Annual filing
Conclusion#
Equalization Levy targets digital economy taxation.