Hi SF Community,
I wanted to share some of the learnings from our journey to close one of the first search deals in India.
A key question that Investors ask when investing in Search Deals in India is about taxation and tax credits. India has comprehensive Double Tax Avoidance Agreements (DTAA) with most countries in the world. For Dividends and Interest Income, a withholding tax is deducted in India. For capital gains, a tax rate defined as the lower of the one listed in the DTAA or India domestic rate for International investors is applied. When an international investor files their tax return in their home jurisdiction, they get 100% credit for the withholding and capital gains taxes paid in India. Indian tax rates for international investors who invest in India via the FDI route in private companies are significantly lower than tax rates in the home jurisdictions of international investors. Thus the total effective tax rate for an international investor for an investment in an Indian private company is the same as the one in their home jurisdiction.
Happy to connect with prospective investors and searchers interested in India! For information on the deal, refer to https://www.searchfunder.com/post/b2b-office-and-warehouse-supplies-procurement-automation and reach out to me at --@----.com