Will Trump’s win force India to rejig corp tax?

After accounting for surcharges and cess, India’s tax rate touches 25%. He emphasized that India offers numerous benefits that can lower the effective tax rate for foreign companies.

Riaz Thingna, partner at Grant Thornton Bharat, emphasizes that investments are primarily guided by business opportunities and returns, with tax acting as a sweetener.

While the United States’ potential move toward lower corporate tax rates will require a relook at India’s corporate tax policy, Thingna highlights that India’s ambitious capital outlay on infrastructure and fiscal prudence will limit its ability to reduce tax rates easily.

To continue attracting FDI, India may consider moderate and gradual tax rate reductions while ensuring stable and predictable tax policies, faster dispute resolution, and reduced tax administration complexities will play an even greater role in attracting investment, he said.