Over the past five years, the government of India has brought in various tax and regulatory changes to attract investment while simultaneously bolstering growth.
A key tax development recently has been the promulgation of the Taxation Laws (Amendment) Ordinance, 2019 (Ordinance). The Ordinance significantly reduces the existing corporate tax rates (CTR) and Minimum Alternate Tax (MAT) rates.
Reduction in CTR had been a long-standing demand by the Indian corporate sector. It aligns the tax rates with those of several developed economies. It also makes India a very attractive investment destination particularly for setting up manufacturing operations.
This publication compares India’s tax rates with the tax rates in key economies.