GIFT City is a acronym for “Gujarat International Finance Tech-City”. GIFT City is a central business district established in Ahmedabad District in Gujarat, India. This is a government promoted greenfield project inaugurated in 2015. GIFT City is the India’s first Operational smart city.
As the name depicts, GIFT City is intended to make a global hub in India to provide financial and business services and attract the business and investors around the world. GIFT City is intended to create a Tech City in India. The services industries established in Gift City are Offshore banking, asset management, insurances, capital market etc. Units established in GIFT City intends to offer global financial and IT Services.
A area of gift city is a notified Special Economic Zone (SEZ) and remaining part is considered as Domestic Tarriff area (DTA). So far, many companies have already established there unit in GIFT City.
To promote entities in GIFT City, the government of India has provided various tax incentives to units located in GIFT City. This article discusses the tax incentives available to units located in GIFT city.
1. Tax incentives under Income Tax Act
1.1 For Units located in IFSC
Following incentives are available to the units located in IFSC Units:
a. Tax Holidays for consecutive period of 10 Years
- As per Section 80LA(1A) of Income Tax Act, Units of an International Financial Services Centre (IFSC) shall be allowed a deduction of 100% of total income for any 10 consecutive assessment years, at the option of the assessee, out of 15 years.
- Computation of such 15 years shall commence from the assessment year relevant to the previous year in which the registration under the International Financial Services Centres Authority Act, 2019 (50 of 2019) was obtained.
- Further, Such deduction shall be allowed with respect to income arises from any Unit of the International Financial Services Centre from its business for which it has been approved for setting up in such a Centre in a Special Economic Zone.
b. MAT/AMT applicable at the rate 9%
- As per Section 115JB of Income Tax Act, every company is liable to pay Minimum alternate tax of 18.5% of its book profit.
- However, as per Section 115JB(7) of Income Tax Act, where the assessee is a unit located in International Financial Services Centre and drives its income solely in convertible foreign exchange then such unit shall be liable to pay MAT at the rate of 9% instead of 18.5%.
- Further, provisions of MAT and AMT shall not apply to companies and units located in IFSC which has opted for new tax regime.
c. Taxability of Dividend Income in hands of Shareholders
- Till 31st March, 2020, as per Section 115-O of Income Tax Act, any amount declared, distributed or paid by any company in form dividend (whether interim or otherwise) on or after 01.04.2003 till 31.03.2020 then such distributed dividend shall be charged to additional income-tax (DDT) at the rate of 15% in the hands of company.
- As per Section 115-O(8) of Income tax act, where dividend income is distributed by any unit located in International Financial Service Centre (IFSC) on or after 1st April, 2017 then such dividend income shall neither be taxable in hand of the company nor the person racing such dividend;
- However, provisions of Section 115-O has become ineffective from 1st April, 2020 onwards and dividend income is taxable in hands of the shareholders.
- For Units located in IFSC also, the dividend income is taxable in hands of the shareholders with effect from 01.04.2020.
d. Non applicability of Surcharge and cess on certain incomes
Surcharge and health and education cess not applicable on certain incomes earned by specified funds in the IFSC.
1.2 Tax incentives to Investors
a. Income tax on dividend income received from NRI or foreign Company
- As per Section 115A of Income Tax Act, where total income of a non-resident or a foreign company includes any income by way of dividend received from units located in IFSC then such dividend income shall be liable to Income tax @ 10%.
b. No capital gain on transfer of specified securities listed on IFSC Exchange
- 1961年所得税法第47条では、譲渡とみなされない取引の性質が列挙されており、そのため、これらの取引にはキャピタルゲイン課税の規定が適用されません。
- 所得税法第47条(viiiab)に基づき、以下の資本資産の譲渡は、
- 第115AC条第(1)項に規定される債券またはグローバル預託証券（GDR）、あるいは
- インド企業のルピー建て債券、あるいは
- デリバティブ、あるいは
- その他中央政府がこの目的のために通知する証券、
非居住者がIFSC（国際金融サービスセンター）内の認定証券取引所において行い、かつ当該取引の対価が外貨で支払われる、または支払われるべきものである場合、それは譲渡とはみなされません。
- したがって、かかる譲渡に対して譲渡益課税は適用されません。
c. 非居住者に対する利子およびロイヤリティ所得の非課税措置
- 所得税法第10条(4F)に基づき、非居住者が国際金融サービスセンター（第80LA条(1A)に規定）のユニットから得たロイヤリティまたは利子形式の所得は、所得税の課税対象となりません。
- ただし、当該ユニットは2045年3月31日以前に操業を開始している必要があります。
d. その他の免税措置
- IFSC内の認定証券取引所にのみ上場されている長期債券およびルピー建て債券の利子：
- 非居住者が、IFSCのオフショア・バンキング・ユニットに維持されている口座において、ポートフォリオ・マネージャーを通じて管理・運用される証券、金融商品、またはファンドのポートフォリオから受け取る所得のうち、インド国外で発生または生じた範囲内のものは非課税となり、インド国内で発生または生じたものとはみなされません。
2. 商品サービス税（GST）における税制優遇措置
商品サービス税法の下では、IFSC内のユニットに提供されるサービスにGSTは適用されません。ただし、IFSCから国内関税地域（DTA）内のユニットや企業に提供されるサービスにはGSTが課税されます。
さらに、投資家の観点からは、IFSCの取引所で行われる取引にGSTは適用されません。
3. その他のインセンティブ
IFSC内のユニットに対しては、リース料、積立基金（PF）拠出金、電気料金などの様々な経費に対する補助金が用意されています。投資家に対しては、IFSC取引所で行われる取引に関して、証券取引税（STT）、商品取引税（CTT）、印紙税の免除が適用されます。
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