Reuters reports that a new draft amendment would extend by 10 years a tax break for foreign companies that supply machinery and equipment to contract manufacturers in India. Here are the details.
Apple could get a major tax boost in India
According to the report, India is moving to extend a tax break that is currently set to expire in 2031 until 2041. The exemption prevents foreign companies from becoming liable for Indian income tax simply because they own equipment used by contract manufacturers in the country.
Here’s Reuters:
And
The report notes that the move is a major win for Apple, which heavily lobbied the Indian government for the tax exemption that was introduced earlier this year and initially set to expire in 2031.
Today’s news also comes just a few weeks after India removed import duties of 5% and 7.5% on several components used to manufacture smartphones and other electronic devices, further cementing the country’s role in Apple’s efforts to diversify its supply chain away from China.
As Reuters noted, India “is set to make 26% of the world’s iPhones in 2026, up from 6% four years ago,” according to data from Counterpoint Research.
To read Reuters’ full report, follow this link.
