Latest news with #DTAs
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Business Standard
6 days ago
- Business
- Business Standard
Govt eases SEZ rules to promote chips, electronics component manufacturing
The government has unveiled a series of policy relaxations aimed at boosting high-tech manufacturing, including semiconductors and electronic components in special economic zones (SEZs). According to a gazette notification issued by the Ministry of Commerce and Industry, the minimum land requirement for setting up such SEZ units has been reduced from 50 hectares to 10 hectares. The relaxed norms will apply to sectors including semiconductors, display module sub-assemblies, various other module sub-assemblies, printed circuit boards, lithium-ion battery cells, mobile and IT hardware components, hearables, and wearables. These changes, under the Special Economic Zones (Amendment) Rules, 2025, came into effect on June 3, 2025. 'We want to promote the manufacturing of semiconductors and electronic components. These are mostly single-unit SEZs where the 50-hectare rule may have been an issue. That's why we have reduced the size to 10 hectares,' said a commerce department official, requesting anonymity. 'Semiconductors require significant investment and take time to turn profitable. That's why we have also provided concessions in Net Foreign Exchange (NFE) calculations. We expect major investments and substantial job creation.' Under the revised guidelines, for units providing semiconductor manufacturing services, the value of goods received or exported on a free-of-cost (FOC) basis must now be included in NFE calculations, aligning SEZ norms with Customs valuation practices. SEZ units are required to be net foreign exchange earners over a five-year period -- a key condition for accessing various benefits under the SEZ Act, such as duty-free imports of inputs and capital goods. Launched in 2021 as part of the broader production-linked incentive (PLI) scheme, the India Semiconductor Mission (ISM) aims to develop a robust semiconductor and display ecosystem and position India as a global hub for electronics manufacturing and design. The government is currently working on the next phase of the ISM rollout. Asked why semiconductor firms would prefer SEZs over domestic tariff areas (DTAs), the official said: 'SEZs offer Customs and integrated GST (IGST) benefits. So it is always beneficial to have units in SEZs than in DTAs because semiconductor manufacturing requires a lot of capital goods to set up a plant.' Kunal Chaudhary, a partner at EY, said the SEZ Amendment Rules, 2005, align India's policy framework with the strategic objectives of high-tech manufacturing sectors. 'These amendments provide greater flexibility in land usage and establish a clear methodology for NFE computation -- key steps to drive export growth,' he said. Manufacturing service providers based in SEZs will now be permitted to source capital goods, raw materials, components, and consumables from the domestic market, in addition to imports. The government has also expanded the options for the movement of finished goods: SEZ units can now supply to DTAs upon payment of applicable duties or transfer goods to a free trade and warehousing zone (FTWZ), even if located in a different SEZ, based on instructions from the overseas entity. 'The concession applies only to NFE calculation. Often there is a parent company abroad, and the SEZ unit provides manufacturing services for it. This move encourages them to not only export but also serve the domestic market. That way, India benefits from foreign exchange earnings,' the official explained. Vivek Jalan, partner at Tax Connect Advisory Services, said the amended rules provide SEZ units with greater flexibility to retain tax advantages. 'Earlier, finished goods could only be exported or moved to a Customs-bonded warehouse maintained by the overseas entity. Now, these goods can be supplied to the DTA with duty payment or transferred to a FTWZ unit run by the overseas entity, whether in the same or a different SEZ,' he noted. In addition, the minimum land requirement for multi-product SEZs in several states and Union Territories --Nagaland, Manipur, Mizoram, Arunachal Pradesh, Tripura, Meghalaya, Sikkim, Uttarakhand, Himachal Pradesh, Goa, Andaman & Nicobar, Lakshadweep, Dadra and Nagar Haveli and Daman and Diu, Ladakh, and Puducherry -- has been lowered from 20 hectares to 4 hectares.
Business Upturn
26-05-2025
- Business
- Business Upturn
AX CAPITAL Strengthens Dubai Real Estate Leadership with Exclusive Peace Homes Collaboration
AX CAPITAL has partnered exclusively with Peace Homes to market Natuzzi Harmony and Sky Vista, two premier developments in Dubai. The collaboration leverages AX CAPITAL's global reach, expertise in development sales, and the UAE's favourable investment climate to attract international buyers. Photo Courtesy of AX CAPITAL DUBAI, United Arab Emirates, May 26, 2025 (GLOBE NEWSWIRE) — AX CAPITAL , a leading real estate brokerage in Dubai, has entered an exclusive partnership with Peace Homes to market and sell two distinguished developments: Natuzzi Harmony and Sky Vista. This collaboration highlights the confidence top developers place in AX CAPITAL's proven track record in connecting exceptional properties with discerning global buyers. This is not the first experience of AX CAPITAL cooperation with leading Dubai developers as an exclusive sales partner. AX CAPITAL's portfolio already includes more than 10 exclusive projects that have been successfully sold through the agency, including ultra-luxury branded residences. With a sophisticated marketing ecosystem, AX CAPITAL is strategically positioned to attract high-quality leads through targeted digital campaigns, data-driven outreach, and a keen understanding of buyer behaviour. The firm's globally connected Primary Sales team, ensures maximum exposure for Natuzzi Harmony and Sky Vista, engaging serious investors from around the world. As AX CAPITAL leads the sales efforts for Natuzzi Harmony and Sky Vista, investors gain access to the UAE's renowned tax-free investment environment. The absence of personal income tax and capital gains tax, coupled with zero withholding tax on dividends and interest, makes the UAE a prime location for real estate investment. With a legacy of over 14,000 completed transactions and a portfolio of more than 7,000 properties, AX CAPITAL helps clients leverage the UAE's favourable tax policies, even as the country introduces a 9% corporate tax rate on income exceeding AED 375,000—one of the lowest globally. AX CAPITAL specializes in identifying prime investment opportunities within the UAE's free zones, where 100% foreign ownership and tax exemptions are available. The firm's in-depth expertise across 40+ free zones empowers clients to structure their holdings for maximum tax efficiency, including benefiting from a 0% corporate tax on qualifying income. Additionally, AX CAPITAL guides clients in utilizing the UAE's network of over 140 Double Taxation Agreements (DTAs), ensuring investors enjoy tax certainty and protection. The firm offers end-to-end support, from navigating complex regulatory frameworks to securing long-term residency through the 10-year Golden Visa program. About AX CAPITAL Founded in 2019, AX CAPITAL has swiftly established itself as Dubai's fastest-growing real estate agency. With a team of over 700 multilingual specialists fluent in more than 30 languages, the firm serves a diverse clientele across 100+ nationalities, delivering exceptional service and expertise across the UAE's real estate market. About Peace Homes Development Since its establishment in 2013, Peace Homes Development has been synonymous with affordable luxury, blending innovative architectural design with community-focused living. With 14 completed towers and six ongoing mega-developments spanning 4.2 million square feet of residential space, Peace Homes exemplifies its commitment to 'democratizing opulence,' highlighted by signature features such as private pools in all residences in Sky Vista and Natuzzi Harmony. Contact Information Nicoline EngerMarketing Executive AssistantAX CAPITAL+971 52 235 2553 [email protected] Dubai, UAE
Fibre2Fashion
24-05-2025
- Business
- Fibre2Fashion
Cambodia set to boost trade & investment with Laos, Philippines
As double taxation agreements (DTAs) between Laos and the Philippines with Cambodia are set to enter into force soon, Cambodian economists are optimistic that foreign direct investment (FDI) from the two countries and bilateral trade will rise. Cambodia's general department of taxation believes the DTAs are not designed just to avoid double taxation; these also build investor confidence and certainty by offering several benefits. As double taxation agreements (DTAs) between Laos and the Philippines with Cambodia are set to enter into force soon, Cambodian economists are optimistic that FDI from the two countries and bilateral trade will rise. Cambodia has completed technical negotiations on a DTA with Myanmar and is now negotiating DTAs with six countries: the United Arab Emirates, Japan, Morocco, France, Qatar and Azerbaijan. The benefits include clear tax rules between the contracting states, reduction or elimination of certain taxes, the prevention of tax discrimination between domestic and foreign companies, mechanisms for resolving tax disputes and systems for information exchange to combat tax evasion, according to a domestic media outlet. At present, Cambodia has DTAs with 11 countries and jurisdictions. Cambodia has completed technical negotiations on a DTA with Myanmar and is currently negotiating DTAs with six countries: the United Arab Emirates, Japan, Morocco, France, Qatar and Azerbaijan. Fibre2Fashion News Desk (DS)
Yahoo
03-04-2025
- Business
- Yahoo
HMRC warns UK businesses about tax avoidance scheme
The UK's HMRC has issued a warning to companies about a tax avoidance scheme that involves using advertising and marketing expenditure to reduce taxable profits. The scheme also disguises employment income as redeemable loyalty points, which the HMRC believes does not deliver the intended tax reliefs. The company involved in the scheme claims the advertising expenditure is tax-deductible. However, at least 80% of this amount is returned to directors or employees as 'loyalty points'. The scheme operates by purchasing 'advertising' from the promoter, claiming a deduction for the expense, and reclaiming value added tax (VAT). Directors or associates then receive loyalty points, which are converted to cash on prepaid cards for personal use. However, the HMRC contends that the advertising expense may not be an allowable expense for corporation tax purposes, as it might not be incurred wholly and exclusively for the business. Additionally, the input VAT might not be recoverable, and the loyalty points could represent taxable income for the directors. This is in contrast to air miles or credit card points acquired by employees, which may not be taxable. The HMRC said it 'strongly advises' those using this or similar schemes to withdraw and settle their tax affairs. It also suggested seeking independent advice or consulting with tax charities for help and guidance. The HMRC also reminded scheme promoters of their obligations and potential sanctions for rule breaches. This warning follows the HMRC's recent update to its international manual, which provides guidance on the tax treatment of lump sum pension payments under the UK's double tax agreements (DTAs). The new guidance clarifies that, for most DTAs, lump sum and non-lump sum payments from pension schemes are generally treated similarly. "HMRC warns UK businesses about tax avoidance scheme" was originally created and published by The Accountant, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
