Corporate Tax in India Now Second Lowest in Asia After Nirmala Sitharaman Announces Rate Cut; Here's Where it Stands in The World
Nirmala Sitharaman slashed the corporate tax rate for domestic companies to 22% from the existing 30%. With this, India has become the second country in Asia to have the lowest CTR. Here's where it stands in the world.
New Delhi, September 20: Union Finance Minister Nirmala Sitharaman announced on Friday to slash the corporate tax from 30 percent to 22 for domestic companies. Following this announcement, India is now among the countries that have a low corporate tax rate globally, while it is the third country after Thailand to have a CTR less than 25 percent. What is Corporate Tax? Here's All About the Capital Tax and How it is Charged by Union Govt.
Comparing India's CTR with the rest of the country in Asia, India stands at second position with 22 percent, while Thailand attains the first position with 20. Apart from this, the third country in Asia to have less than 25 percent CTR is Malaysia which is 24 percent. The CTR in other countries of Asia includes China (25), Japan (30.86), South Korea (25), Indonesia (25), Sri Lanka (28), Pakistan (31), Bangladesh (25) and Myanmar (25) respectively.
Not only in Asia, but the rate cut announced by the Union government has also made India a country whose CTR is less than globally developed countries. In the segment of 10 globally empowered economies, India's position is just below the United Kingdom, which charges on 19 percent CTR. Corporate Tax Slashed For Domestic Companies, Existing And Fresh; Nirmala Sitharaman Announces New Rates.
The CTR in the top ten economies are as follows:
| Country | Corporate Income Tax Rate 2019 (in %) |
| United States of America | 25.9 |
| China | 25 |
| Japan | 29.7 |
| Germany | 29.9 |
| India | 22 |
| France | 32 |
| United Kingdom | 19 |
| Italy | 24 |
| Brazil | 34 |
| Canada | 26.8 |
Considering the announcement made by the Union Minister on CTR cut, market experts are stating that the decision was long pending and would help in getting the Indian economy back on track. Also, the Sensex skyrocketed after months of trailing and was at 38014.62, with a gain of 1921.1 points. Even Nifty 50 gained 569.40 points and was at 11.274.20 at the market closing.
(The above story first appeared on LatestLY on Sep 20, 2019 06:49 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).