New Delhi: Any move by American electronics giant Apple and India’s ecosystem will set a big signal for foreign companies coming from China to India. Financial Minister Nirmala Sitharaman said on Sunday. Apple moves to India is a big signal for foreign companies investing in India after an attractive tax rate, which the finance ministry now offers.
Nirmala Sitharaman spoke at her official residence that the move is calculated as a risk as it would help change the mood of the country. FM revealed that no country in South East Asia offers a 15% tax rate to set up a manufacturing company in India.
She said that this simple taxation structure would work for companies that are relocating from China to India. Foreign investors pointed the higher corporate tax is a major hurdle but announced corporate tax cuts on Friday, India could be a great investment option now for them.
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The government on Friday announced a bonus of Rs 1.45 lakh, which will reduce the effective corporate tax rate from 29.5% to 25.17%, which does not seek exemption for companies while 15% corporate tax rate for new manufacturing units or startups.
The Financial Ministry also said that it will not be easy for any government to raise these corporate taxes in the future. A government needs a solid reason to go to Parliament and amend them. Therefore, India may be the best investment option for foreign companies making investments as there is no country in Southeast Asia offering a 15% corporate tax rate for new manufacturing units and startups.
If you too are planning to invest in India or want to start your own startup then there is a good chance to start now.