Statutory Tax Rate in India V/s Select Countries

The corporate sector in India is characterised by the coexistence of Indian and foreign companies (the latter henceforth foreign direct investment companies or FDI companies), we examine the tax behaviour of these two segments separately. To supplement the analysis of FDI companies, this note further examines the behaviour of companies from eight countries, which account for the bulk of-FDI stock in India. This comprises seven countries from the Organisation for Economic Co-operation and Development (OECD), which together accounted for 55.7% of total FDI stock in 2012, such as France (with 1.7% share in total FDI stock), Germany (5.8%), Japan (7.1%), Netherlands (4.8%), Switzerland (5.1%), United Kingdom (UK) (16.3%) and United States (us) (14.9%). Along with Mauri-tius's share of 26.5%, these eight countries account for 82.2% of total FDI stock in India.