UKIBC urges Government for parity in corporate tax for foreign and domestic firms
Currently, the corporate tax rates for Foreign Companies are 43.68 percent and for Domestic Companies is 25.17 percent .
Finance Minister Nirmala Sitharaman (File image: Reuters)
The UK-India Business Council (UKIBC) has urged the Government of India to bring parity in the corporate tax rates between foreign and domestic companies in its recommendations for Union Budget 2021.
Currently, the corporate tax rates for Foreign Companies are 43.68 percent and for Domestic Companies is 25.17 percent .
“Globally, the general practice is to have a tax rate parity across all kinds of companies within the same industry. Examples are all BRIC countries except India and a majority of OECD countries (UK, Japan, etc.) as well as important financial centers like Hong Kong & Singapore where the tax structures for domestic and overseas companies are identical,” said Jayant Krishna, Group CEO, UKIBC in a statemen
The UK-India Business Council (UKIBC) has urged finance minister Nirmala Sitharaman to bring parity in the corporate tax rates applicable to foreign and domestic companies and remove retrospective amendment to the Income Tax Act in the upcoming Budget. The reduction in the corporate tax rate for domestic firms, coupled with the abolition of dividend distribution tax (DDT), creates significant disparity between the effective tax rates applicable to foreign companies at 43.68 per cent and domestic companies at 25.17 per cent. In its recommendations for the upcoming Budget submitted to the finance minister, UKIBC said, “Globally, the general practice is to have a tax rate parity across all kinds of companies within the same industry.
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