Indian government reduces tax rates for companies with presence in India

Last September 20, India's Minister of Finance, Nirmala Sitharaman, ha annunciato l’introduzione di una nuova importante misura to make the Subcontinent increasingly open to international business: Indeed, the measure provides for the 10% reduction in corporate income tax for all companies registered in India (including foreign subsidiaries).

The new provision, effective as of April 1, 2019 (it has retroactive effect), has the objective of  To grow and attract more investment to India, creating new jobs.

These are the key points of the legislation : 

• Indian companies that do not enjoy any tax exemptions and that they were constituted pre October 2019the effective corporate income tax rate will be 25.17%. Furthermore, these companies will not be required to pay the MAT (Minimum Alternative Tax);

• Indian company (manufacturers who started production by 03/31/2019) constituted post 01.10.2019: the tax rate is 17.01%, unless precise exemptions are claimed. Again, there are no obligations related to the payment of MAT;

• Companies that want to pay income taxes following the old rates: taxation and MAT will be calculated. On the basis of the imposed brackets (turnover and business income) 

Octagona has been present in India for 17 years. through its offices in New Delhi, Pune and Bangalore in which the local team operates. If you want to find out how to do business in India and for more information in the Indian market contact us at telephone number 059.9770184 or send a email to the address [email protected]: you will receive all the information you need.

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