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 sempre più aperto al business internazionale: Indeed, the measure provides for the taglio del 10% alle imposte sui redditi d’impresa per tutte le aziende registrate in India (including foreign subsidiaries).

The new provision, effective as of April 1, 2019 (ha effetto retroattivo), ha l’obiettivo di  To grow and attract more investment to 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 were constituted pre 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 who started production by 03/31/2019) constituted post 01.10.2019:  l’aliquota fiscale è del 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 è presente in India da 17 anni 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 mail all’indirizzo octagona@octagona.com: you will receive all the information you need.

Read also: 

Business in New Delhi: Sistema Italia needs an innovative strategy