Budget 2024: Corporate Tax Rate For Foreign Companies Cut To 35%

SUMMARY

To attract foreign capital for development needs, the government has proposed to reduce the corporate tax rate on foreign companies from 40 to 35%

In addition to the corporate tax rate, the government has also proposed to ease norms on the foreign direct investment (FDI) and overseas investment

Interestingly, the government has also proposed to abolish the ‘Angel Tax’ for all classes of investors to boost the startup ecosystem

To promote investment and foster employment, finance minister Nirmala Sitharaman proposed cutting corporate tax rate on foreign companies to 35%.

“To attract foreign capital for our development needs, I propose to reduce the corporate tax rate on foreign companies from 40 to 35%,” Sitharaman said while presenting the Union Budget 2024-25 (FY25).

In addition to the corporate tax rate, the government has also proposed easing norms for foreign direct investment (FDI).

“FDI and overseas investment rules will be simplified to facilitate foreign direct investment, nudge prioritisation, and promote opportunities for using Indian rupee as a currency for overseas investment,” FM said during her budget speech.

Interestingly, the government has also proposed to abolish the angel tax for all classes of investors to boost the startup ecosystem and entrepreneurship in India.