Introduces measures to simplify taxation, attract investment in infrastructure, and support agro-processing
01 Jan 2023
The 2023 Budget implemented tax changes from January 1, 2023. Key highlights include:
Direct Tax Changes:
- Single tax rate of 35% for telecommunication.
- Income tax reduced to 25% for gemstone facilities.
- Presumptive tax reduced to 15% for land-based betting companies.
- Removal of 20% withholding tax on re-insurance.
- Inclusion of software rent in royalties definition.
- Restructured mineral royalty regime based on incremental value.
- Property transfer tax reduced to 7.5% for mining exploration.
Public-Private Partnership Incentives:
- 20% tax reduction for special purpose vehicles in PPP projects.
- Accelerated wear and tear allowances for project-related assets.
- Customs duty and VAT exemption for imported project assets.
- Input VAT claim allowed for special purpose vehicles during set-up phase.
Income Tax Concessions for Agro-Processing:
- 15-year income tax concessions for corn starch sales.
- 0% corporate income tax for 2023-2033.
- Gradual relief for corporate income tax in subsequent years.
- 0% withholding tax on dividends for 2023-2033.
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Type:
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Promotion and facilitation (Investment incentives)
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Industry:
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