Indian Government to impose tax on Netflix's income

The government of India is planning to seek tax from Netflix’s income earned from streaming services in India, as per reports.

According to officials, this is the first instance where overseas digital companies offering e-commerce services to Indian consumers will be taxed. They explained that tax officials have justified this by pointing out that Netflix has a presence in India through its infrastructure and employees who have been temporarily assigned from the parent company to support its streaming services. As a result, this has created a permanent establishment (PE) for Netflix in India, making it liable for taxes in the country.

In 2016, Netflix launched its streaming services in India and now boasts more than 6 million subscribers in the country.

Based on financial data obtained from Tofler, Netflix Entertainment Services India recorded gross revenue of ₹1,529.36 crore at the end of the fiscal year 2021.