What is the corporate tax rate for foreign subsidiaries in India?

Foreign companies incorporated in India as subsidiaries are treated as domestic companies and taxed at 22% under Section 115BAA or 25-30% based on turnover. Foreign companies not incorporated in India are taxed at 40% plus surcharge on India-sourced income.

What is TDS and how does it apply to foreign companies?

Tax Deducted at Source (TDS) is withholding tax deducted at the point of payment. For payments to non-residents, TDS rates range from 10% to 40% depending on income type. Proper TDS compliance is essential to avoid disallowance of expenses and penalties.

When must a foreign subsidiary file an income tax return in India?

An income tax return (ITR-6) must be filed by July 31, or October 31 if a tax audit is required. Companies subject to transfer pricing must file by November 30.

Direct Tax Advisory for Foreign Companies in India

Designing Tax-Efficient Structures and Ensuring Compliance for International Businesses Operating in India

Tax Structuring Cross-Border Transactions PE Exposure Analysis Corporate Compliance

Overview

Strategic Direct Tax Advisory for India-Bound Businesses

India offers significant growth opportunities for global businesses, but the direct tax framework requires careful planning and structured compliance management. Foreign companies entering or expanding in India must evaluate tax structuring, cross-border transactions, withholding tax exposure, and regulatory reporting obligations.

Direct tax advisory plays a critical role in enabling multinational businesses to establish tax-efficient operational structures while maintaining compliance with Indian income tax regulations.

Valytics Global supports foreign companies in designing strategic tax frameworks, managing regulatory exposure, and aligning tax planning with long-term business objectives in India.

Why Direct Tax Planning Matters

India's tax framework has significant implications for foreign investors
Incorrect structuring can create unintended PE exposure
Cross-border payments attract withholding tax obligations
Profit repatriation requires careful dividend tax planning
Tax audit readiness is critical for compliance risk management
Early planning reduces long-term tax cost and regulatory risk

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Service Areas

Key Areas of Direct Tax Advisory

Our direct tax practice covers the full spectrum of tax considerations for foreign companies operating in or expanding into India.

Tax Structuring for India Market Entry

Structuring subsidiaries, joint ventures, and holding models
Advisory on inbound investment tax implications
Profit repatriation and dividend taxation planning
Permanent Establishment (PE) exposure analysis
Evaluation of global holding structures

Corporate Tax Compliance Support

Corporate tax return review and coordination
Advance tax planning and computation support
Tax audit readiness and documentation
Withholding tax compliance oversight
Tax health checks and risk reviews

Cross-Border Transaction Advisory

Tax implications of international payments
Structuring royalty, service, and management fee arrangements
Transfer pricing coordination support
Withholding tax exposure assessment
Tax implications of group restructuring

Strategic Tax Advisory

Tax support for mergers, acquisitions, and restructuring
Transaction tax planning for investments and exits
Risk assessment for international business structures
Advisory aligned with expansion and growth strategies

Our Advisory

How Valytics Helps

Practical, business-focused tax advisory that goes beyond compliance — helping you build tax-efficient structures and manage risk proactively.

Designing Tax-Efficient India Entry Strategies

We assist global businesses in establishing tax-efficient operational structures aligned with regulatory requirements and long-term business objectives in India.

Strengthening Tax Governance and Compliance Readiness

Our approach focuses on improving tax documentation, reporting processes, and compliance monitoring frameworks to reduce audit risk and regulatory exposure.

Managing Cross-Border Tax Risks

We help organizations identify and mitigate tax exposure arising from international transactions, cross-border payments, and global group structures.

Supporting Strategic Business Decisions

Valytics provides financial and tax insights to support expansion planning, investment decisions, and long-term business strategy in the Indian market.