Govt may review tax sops offered to IFSC
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The government may have to take a relook at the tax incentives being offered to units in the International Financial Services Centre (IFSC), a new financial hub in Gujarat, in view of Pillar Two of the Base Erosion Profit Sharing framework, according to a Deloitte report. "MNE groups having operations in the GIFT (Gujarat International Financial Tech) City will need to evaluate the overall tax impact in India, pursuant to the Pillar Two Globe Rules," the report said. A group having non-IFSC presence along with a unit in IFSC may be able to benefit from the jurisdictional blending at India level, it said. It suggested offering incentives in other forms to keep the attractiveness of IFSC intact. Pillar Two sets out global minimum tax rules aiming to ensure that large MNCs pay a minimum effective rate of tax of 15% on profits in all countries.The report pointed out that units in IFSC may not have enough employees and assets to avai...