NITI pitches for presumptive taxation scheme for FIIs

The government think tank Niti Aayog Friday suggested the introduction of a presumptive taxation scheme for foreign companies to provide certainty and simplicity.

- PRESS TRUST OF INDIA

Aayog, in a working paper, said the optional presumptive taxation scheme would help in resolving disputes concerning PE (permanent establishment), simplifying compliance and protecting revenue.

“The proposed presumptive taxation scheme is a proactive and pragmatic solution to a longstanding problem. It balances India's sovereign right to tax with the need to provide certainty and simplicity to foreign investors,” the working paper said.