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Switzerland: Platform taxation – New challenges in online business
India has recently amended its local tax laws. One of the critical changes included increase in effective tax rate on Royalty and Fees for Technical Services (FTS) from 10.92% to 21.84% (including applicable surcharge and cess) with effect from April 1, 2023.
Through this move, the non-residents/foreign companies will be compelled to avail of the tax treaty benefits, as the treaty rates would now be more beneficial in comparison to the earlier scenario. Typically, to avail of Tax Treaty Benefits, Indian law requires the Non-Resident/Foreign Company to submit a Tax Residency Certificate (TRC) and other declarations. However, where the TRC does not contain all the details as required by Indian Laws, an additional form known as Form 10F is required to be submitted along with the TRC.
It would also be pertinent to note that recently, the Central Board of Direct Taxes (CBDT) in India has mandated electronic filing of Form 10F by non-residents, as applicable. The CBDT had also provided temporary relief for non-residents not having a Permanent Account Number (PAN) (i.e., Indian Tax Registration Number) in India to furnish Form 10F manually but only till 31 March 2023 (now extended till 30 September 2023).
For more information, please contact:
Maulik Doshi Senior Executive Director
maulik.doshi@nexdigm.com
Nexdigm, India
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