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Below Quote On Pre Budget Corporate Tax By Manoj Purohit, Partner & Leader – Financial Services Tax, BDO India

There is high demand to have a relook at the corporate tax rates applicable to Foreign Banks. Currently, Foreign bank branches are subject to tax @ 43.68% (including surcharge and cess) under the Indian tax laws. The Government has already reduced the corporate tax rate for domestic companies from 30 % to 22% (plus applicable surcharge and cess) w.e.f. FY 2019-20. This change has created a disparity between the corporate tax rate applicable to foreign companies vis-à-vis domestic companies. It is time to eliminate the gap and rationalise the corporate tax rate for foreign companies including bank branches.

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