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TAX LAW NEWS: India Proposes10 % Tax Surcharge

Sunday, 03 March 2013 16:05

It has been announced that the India's Government has proposed in its recent budget a one-year 10 per centum tax surcharge on the wealthy or as the Indian media refer to as the "super-rich".

According to the Financial Times of March 1, 2013, the first reaction to such a proposal in particular by industrialists and by economists was that the plan failed to give any long-term direction to the country's economy, complaining that "there is no target ... there is no concerted vision where he wants growth to come from, to where he wants to take this economy."

The Federations of Indian Chambers of Commerce and Industry have described the Indian economy as "the slowest pace of growth in a decade" commenting that "the need of the hour was for some major confidence boosting measures to support investment and growth, but the budget fell short of that."

it has been remarked that along side with domestic companies with a high taxable income, foreign businesses could be also be targeted.

Malta now enjoys over sixty (60) Double Tax Agreements including with India, by means of which persons or companies based in one jurisdiction but with interests in the other, will not be subjected to tax on the same income by both jurisdictions. Double Tax Agreements are much taken into consideration by investors when deciding where to establish or where to transfer their business and indeed, Malta offers an excellent platform therefor.