The Reserve Bank of India has reported the latest data concerning the outward foreign direct investments (FDI) made by Indian corporations. In general, Indian corporations are investing either through low tax jurisdictions, or through countries allowing tax-free remittance of income.
The actual outward FDI in India in the period between April and December 2007 increased 13% and reached US$10.11 billion, compared to US$8.97 billion in April-December 2006.
According to the information published by the Bank, British Virgin Islands were among the three jurisdictions through which major part of outward FDI was directed in April - December of the last year. The other top countries which were invested by Indian companies were Singapore and the Netherlands.
BVI, together with other top jurisdictions, is an intermediate country before Indian investments will reach its final destination. The first place was with Singapore, - the Asia-Pacific business and financial centre had 37% share in FDI approvals ($5 million and above), followed by the Netherlands with 26% and 8% for British Virgin Islands.
Executive Director of PricewaterhouseCoopers in India pointed out the priority for redeploying money for business and commercial reasons, and said that many direct investments were organized in such a way that income from them faced lower tax, or did not attract tax at all. These are the benefits that may be provided by offshore jurisdictions, including British Virgin Islands.
Other factors that may influence the growth of overseas investments through international financial centres are access to new markets, new technologies, risk diversification. Indian corporations are already receiving dividends from all this.
Article any source
No comments:
Post a Comment