Budget proposal on tax holiday likely to boost domestic data centres ...Middle East

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Domestic data centre companies are likely to benefit significantly from the Budget proposal offering a tax holiday of 20 years, as it will enable them to provide services to global clients without the risk of their foreign earnings being taxed in India, sources said. The Budget proposal, which offers a tax holiday of 20 years up to 2047 to any foreign company that procures data centre services in India, allays fears of their global income being taxed by Indian authorities. Irrespective of whether a global company sets up its own data centre in India or procures services from an Indian data centre, the tax treatment will be the same, thereby ensuring complete level playing field, they said. The effective corporate tax rate in India is 25.17 per cent. Some of the major domestic data centres in India are Nxtra Data (Airtel subsidiary), CtrlS Datacenters, Yotta Infrastructure, and AdaniConneX. Corporate tax will be levied on profits made by domestic data centres on income earned from .

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