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What is the applicable corporate income tax rate for our Indian subsidiary?

Question

What is the applicable corporate income tax rate for our Indian subsidiary?

Expert Answer
Answered 09 Oct 2026
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Tax rates applicable to an Indian Private Limited Company:

  • New Regime (Section 115BAA): Base rate applicable is 22%, effective tax applicable is approximately 25.17%.
  • New Manufacturing Companies incorporated after October 2019: Base rate applicable is 15%, effective tax applicable is approximately 17.01%, one of the lowest in the world.
  • Startup Companies (Section 80IAC): 100% tax holiday applicable for any 3 out of 10 years from the date of incorporation.

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