There is still no consensus as to how the global digital giants could be taxed. Many such firms may not have physical presence in different geographies, but do still generate revenue and profits. Europe and India could gain additional taxation revenue. Some principles could be considered to do so. The essential component of the principle must be that a company must pay tax in every geography-market where it generates value and makes profits. Thus the global profits are assigned to the different markets. Here the sales revenues of a particular country could be considered. And profits on such sales could be arrived at. That would be the basis for levying an appropriate tax rate. This is called BEPS or base erosion and profit sharing. There is a nexus between gross sales revenue and overall profitability. We have to allocate income to this nexus. We have not to consider only the residual profits.

Another principle could be the minimum corporate tax an MNC would be required to pay. However, if the first principle is applied, this becomes superfluous.