NITI Aayog introduced its first Tax Policy Working Paper titled “Enhancing Tax Certainty in Permanent Establishment and Profit Attribution for Foreign Investors in India”.
It aims to boost transparency and predictability in tax regulations.
The paper addresses long-standing issues faced by foreign investors related to Permanent Establishment (PE) rules, profit attribution, and dispute resolution to improve India’s investment climate.
It proposes an optional, industry-specific Presumptive Taxation Scheme for foreign companies to reduce litigation, simplify compliance, and enhance administrative efficiency.