Incentive Schemes Overview
Corporate tax benefits | Tax regime for new manufacturing companies
A snapshot
•
Tax rate of 15% plus surcharge and cess [i.e. effective rate of 17.16%]
No Minimum Alternate Tax (MAT)
Lower tax rate vis-à-vis
select other jurisdictions -
China: 25%
Vietnam / Taiwan: 20%
Philippines: 25%
Attractive tax
regime for
New
manufacturing
companies in
India
• Incorporated
on or after 1
October 2019
Company engaged only in manufacture of any article
or thing and research in relation to, or distribution
of, such article or thing manufactured by it
Commencing manufacture on or before 31 March
2023
Not formed by splitting up or reconstruction of an
existing business; and company does not use any
machinery or plant previously used for any purpose
Certain incentives not to be claimed (e.g. additional
depreciation)
Regime to be chosen at the time of filing the first tax
return; cannot be withdrawn subsequently for any year
Domestic transfer pricing provisions to apply
Other
incentives
Income-tax benefits on
employment generation
available [deduction for 30% of
additional employment cost for
3 years, subject to conditions]
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