September 30, 2019 / Tenders, funding and incentives

Government of India reduces tax rates for companies in India

Last September 20, the Finance Minister of India, Nirmala Sitharaman, ha annunciato l’introduzione di una nuova importante misura to make the Subcontinent sempre più aperto al business internazionale: the measure provides for the taglio del 10% alle imposte sui redditi d’impresa per tutte le aziende registrate in India (including foreign branches).

The new arrangement, effective from April 1st 2019 (ha effetto retroattivo), ha l’obiettivo di grow and attract more investment in India, creating new jobs.

These are the key points of the legislation:

Società di diritto indiano che non godono di alcuna esenzione fiscale and that they have been established before October 2019: l’imposta effettiva sul reddito d’impresa sarà del 25.17%. Inoltre, per queste aziende non sarà richiesto il pagamento della MAT (Minimum Alternative Tax);

Società di diritto indiano (manufacturers that started production by 31.03.2019) established after 01.10.2019: l’aliquota fiscale è del 17.01%unless specific exemptions are requested. Also in this case there are no obligations relating to the payment of the MAT;

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

Octagona è presente in India da 17 anni through its offices 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 further information on Indian market contact us at telephone number 059.9770184 or send one email to the address [email protected]: you will receive all the information you need.