Like many countries, India has many preferential tax policies to attract foreign investment, mainly in the form of granting certain tax holidays. These preferential policies can make up for some disadvantages of doing business in India, such as relatively high import tariffs, stricter labor laws and poor public infrastructure. Compared with China, Indian foreign-related tax measures are also very complicated, and the preferential tax policies for different regions and industries vary greatly. The following are some current preferential tax policies for regions and industries in India:

1) Ten-year reduction 100% profit and income tax: including power generation enterprises, power generation, transmission and distribution enterprises or distribution enterprises established before March 3, 2006.

2) Reduce 100% profit and income tax for seven years, including companies that produce or refine mineral oil.

3) Exempt 100% income tax in the first five years and 30% income tax in the second five years: for example, companies that started to provide telecommunication services before March 3, 2003.

4) Exempt from export profit tax by 65,438+000% within ten years from fiscal year 2009-65,438+00: for newly-established industrial enterprises located in electronic hardware science park and electronic software science park.

5) For the export of computer software, 50% export income tax can be reduced or exempted from the total export income.

6) Infrastructure capital companies that invest in infrastructure development, maintenance and operation by means of equity participation or long-term financing are exempt from dividends, interest income tax and long-term capital gains tax.