India's Budget 2025 Boosts Chip Manufacturing with New Tax Regime for Non-Residents

Finance Minister Nirmala Sitharaman unveiled a game-changing presumptive taxation regime for non-residents in the 2025 Union Budget. This new scheme aims to slash the tax burden on foreign entities providing services in India's electronics manufacturing sector, potentially to less than 10% on gross receipts. The move is expected to significantly boost India's semiconductor industry by attracting foreign expertise and investment. Under the proposed Section 44BBD of the Income Tax Act, 25% of the total amount received by non-residents for their services will be deemed as taxable profits, effective from April 1, 2026.

Source: The Indian Express