NITI Aayog has launched the first paper under its Tax Policy Working Paper Series. The paper focuses on improving tax certainty, attracting more foreign investment and bringing more transparency in permanent establishment and profit attribution for foreign investors in India. Addressing the Media, NITI Aayog, CEO BVR Subrahmanyam said that the objective of the paper is to introduce an Optional Presumptive Taxation Scheme that offers a simpler and more predictable way for foreign companies to pay taxes.

 

 

Highlighting the key benefits of the policy, he said that instead of undergoing detailed audits, companies can choose to pay tax based on a fixed percentage of their revenue, depending on their industry. This optional scheme would reduce litigation, cut compliance costs and make it easier to do business in India.

 

 

The paper also recommends clear domestic laws, stronger dispute resolution systems, and better training for tax officials. These steps aim to align India’s tax regime with global standards and support the country’s broader economic vision, including initiatives like Make in India.