US plan to slap higher tax on MNCs likely to upset India’s new tax system
New Delhi: The present US administration’s proposal to levy higher tax on MNCs is likely to hit India’s new tax regime, according to reports.
Tax experts maintained that the Biden administration’s new proposal might be in conflict with India’s new tax management system. According to tax experts, some of the largest US firms have either set up new manufacturing facilities in India or are looking to do so, to avail the lower tax regime.
In 2019, the Modi government slashed corporate tax rates to 22% from 30% for existing companies and to 15% from 25% for new manufacturing companies.
This also comes at a time when the US and India are already at loggerheads over the latter’s digital taxation on companies including Google and Facebook.