Tax Comparison Between India & China

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TERM PAPER ON TAX COMPARISON BETWEEN INDIA & CHINA IN PARTIAL FULFILMENT OF THE COURSE IBLT BY RAVI JAIN MBA (IB) GSIB, GITAM UNIVERSITY TO Prof. R.ANITA RAO Date: Visakhapatnam INTRODUCTION India has emerged as a trading superpower and as an increasing magnet for FDI. Its role in the international economy to this point has been less remarked than the rise and dominance of China but increasingly India will be appreciated for the opportunities it is creating for its citizens, employers and foreign and domestic firms. Recently, I have been researching on ‘Comparison & Contrast of India…show more content…
COMPARISON INCOME TAX RATES INDIA | CHINA | * The tax in India on an individual 's income is progressive. An education tax (CESS) of 3% is imposed too. * A limited company in India is liable for tax at the rate of 30% for a local company and 40% for a foreign company. * Companies in India whose tax liability is less than 10% of the "book profits" pay a 18% minimum alternative tax, MAT on the "book profits" with a surcharge and CESS, bringing the effective tax rate of 19.93% for domestic companies and 19% for foreign companies. | * The tax on an individual 's income is progressive. As at 2010, an individual 's income is taxed progressively at 5% - 45%. * The 2010 corporate tax rate for domestic and foreign companies is 25%. * Small companies pay 20% corporate tax in certain cases. Qualified new hi-tec companies pay 15% corporate tax. | CAPITAL GAINS INDIA | CHINA | * Long term capital gains relate to the sale of an asset that has been held for 3 years or longer (on the sale of negotiable securities on the Indian Stock Exchange, shares that have been held for over a year). * The long term tax rate is
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