The Indian Finance Minister on February 1 presented the last full Union Budget for 2023-24 (Budget 2023) of the current Modi Government. With India’s economic growth in the current year estimated at 6.8%, Budget 2023 focuses on creating an empowered technology-driven and knowledge-based economy with sustained focus on infrastructure and green energy, strong public finances, and a robust financial sector.
On the tax front, the Finance Minister has continued with the underlying theme of providing a stable and predictable tax regime, promoting ease of compliance, widening the tax base, and reducing litigation, while keeping the overall tax structure unchanged. No specific announcements have been made on BEPS Pillar Two implementation.
This Insight highlights some key Budget 2023 tax proposals affecting foreign investors and multinational enterprises doing business in India. Budget 2023 proposals would take effect once the Budget passes both houses of Parliament and obtains Presidential assent.
Action item: Budget 2023 continues with the theme of providing a stable tax regime in India with a focus on ease of doing business. Foreign companies should monitor these developments closely and be especially mindful while planning capital infusions into Indian subsidiaries in line with the proposals.
Watch this webcast replay where our panel of specialists discuss how India Budget 2023 may affect foreign investors and multinational companies with Indian operations.
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