China eases taxes for foreign companies

[Bharatiya]

China will cut taxes on the profits that foreign companies take out of the country by upto 50% after the rules on withholding taxes are relaxed. This would encourage more overseas investments. The move will also apply to dividends paid by chinese listed companies to foreign shareholders through qualified Foreign Institutional Investors Scheme. In both the cases, lower taxes will apply to only companies which have double taxation agreements with China. Don't you think such a move by India could also drive in more investments?

 

[traveller]

Definitely, if India takes a similar decision as China and cut down taxes on profits by the foreign companies, it will surely encourage more investments. This will be beneficial for the economic development of the nation. It will help in bringing about economic stability as well.