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 # No dividend distribution tax (DDT) on dividends paid to non-residents: Companies operating within the SEZ areas of GIFT City are exempt from paying dividend distribution tax (DDT) on dividends paid to non-resident shareholders.
 # No tax on interest income from bonds issued in IFSC: Interest income earned by non-residents on bonds issued in the IFSC area of GIFT City is exempt from tax in India.
+GIFT City stands for Gujarat International Finance Tec-City, which is India's first smart city built for the financial services sector.
+It was launched in 2007 as a joint venture between the Government of Gujarat and Infrastructure Leasing and Financial Services (IL&FS).
+GIFT City is located in Gandhinagar, the capital city of Gujarat, and covers an area of over 886 acres.
+It is being developed as a global financial hub to attract financial services companies and create employment opportunities in the state.
+GIFT City offers several tax benefits to businesses that operate within its premises.
+Companies can take advantage of these tax benefits to reduce their overall tax liability and increase profitability.
+Here are 50 tax benefits offered by GIFT City:
+Corporate Income Tax Benefits
+% deduction of profits and gains for the first five consecutive years from the date of commencement of business.
+% deduction of profits and gains for the next five consecutive years from the end of the initial five-year period.
+No Minimum Alternative Tax (MAT) for the first ten years.
+No dividend distribution tax.
+No tax on long-term capital gains.
+No tax on securities transaction.
+No tax on interest earned on deposits with banks and financial institutions.
+No tax on income earned from offshore funds and investments.
+No tax on income earned from an international financial services center (IFSC).
+Personal Income Tax Benefits
+Employees of companies operating in GIFT City can enjoy a tax-free income up to INR 20 lakh per annum for the first five years from the date of employment.
+No tax on income earned from offshore funds and investments.
+No tax on income earned from an IFSC.
+Goods and Services Tax (GST) Benefits
+Exemption from GST on services provided to companies operating in GIFT City.
+Exemption from GST on the supply of goods and services from a unit in GIFT City to another unit in the same zone or to a unit located outside India.
+Exemption from Integrated Goods and Services Tax (IGST) on the supply of goods and services from a unit in GIFT City to a unit located outside India.
+Customs Duty Benefits
+Exemption from customs duty on goods imported into GIFT City for business purposes.
+Exemption from customs duty on goods exported from GIFT City to foreign countries.
+Exemption from Central Sales Tax (CST) and Value Added Tax (VAT) on the sale of goods within GIFT City.
+Stamp Duty and Registration Benefits
+Exemption from stamp duty and registration fees on documents executed in GIFT City.
+Exemption from stamp duty and registration fees on the lease of land and buildings within GIFT City.
+Property Tax Benefits
+Exemption from property tax on land and buildings within GIFT City.
+Infrastructure Tax Benefits
+Exemption from infrastructure development fees for the first five years from the date of commencement of business.
+Exemption from electricity duty for the first five years from the date of commencement of business.
+Exemption from entry tax on the import of machinery and equipment for the first five years from the date of commencement of business.
+Exemption from octroi and local body tax on the import of goods for the first five years from the date of commencement of business.
+Foreign Exchange Management Act (FEMA) Benefits
+Simplified procedures for foreign exchange transactions for companies operating in GIFT City.
+Liberalized remittance scheme for individuals and companies operating in GIFT City.
+No restrictions on foreign investment in GIFT City.
+Regulatory Benefits
+Single-window clearance for
+Employment Tax Benefits
+Companies operating in GIFT City are eligible for reimbursement of up to 50% of the employer's contribution towards employee provident fund (EPF) and Employees' State Insurance (ESI) for a period of three years from the date of commencement of business.
+Exemption from professional tax on employees working within GIFT City.
+Research and Development (R&D) Tax Benefits
+Companies engaged in R&D activities within GIFT City are eligible for a deduction of 150% of the expenses incurred towards R&D.
+Exemption from customs duty and IGST on the import of R&D equipment and materials.
+Capital Gains Tax Benefits
+No tax on short-term capital gains from the sale of securities traded on a recognized stock exchange located within GIFT City.
+No tax on long-term capital gains from the sale of units of an equity-oriented fund, a business trust or a venture capital fund located within GIFT City.
+Securities Transaction Tax (STT) Benefits
+No STT on the sale of securities traded on a recognized stock exchange located within GIFT City.
+Transfer Pricing Benefits
+Companies operating in GIFT City are exempt from transfer pricing provisions for transactions with associated enterprises located outside India.
+Mutual Fund Tax Benefits
+Exemption from securities transaction tax (STT) on the sale or purchase of units of a mutual fund located within GIFT City.
+Real Estate Investment Trust (REIT) Tax Benefits
+No tax on dividend income received from units of a REIT located within GIFT City.
+No tax on long-term capital gains from the sale of units of a REIT located within GIFT City.
+Infrastructure Investment Trust (InvIT) Tax Benefits
+No tax on dividend income received from units of an InvIT located within GIFT City.
+No tax on long-term capital gains from the sale of units of an InvIT located within GIFT City.
+Startup Tax Benefits
+Companies registered as startups with the Department for Promotion of Industry and Internal Trade (DPIIT) are eligible for additional tax benefits in GIFT City.
+Corporate Tax Benefits
+A corporate tax rate of 10% for companies operating within the International Financial Services Centre (IFSC) in GIFT City, compared to the regular rate of 25% for other Indian companies.
+Minimum Alternate Tax (MAT) Benefits
+No Minimum Alternate Tax (MAT) is levied on companies operating within GIFT City.
+Foreign Tax Credit (FTC) Benefits
+Indian companies operating within GIFT City are eligible to claim foreign tax credits for taxes paid on income earned outside India.
+Double Taxation Avoidance Agreement (DTAA) Benefits
+Companies operating within GIFT City can take advantage of the Double Taxation Avoidance Agreement (DTAA) between India and other countries to avoid paying taxes twice on the same income.
+Tax Incentives for Units in the SEZ
+Companies located in the Special Economic Zone (SEZ) within GIFT City are eligible for tax incentives such as income tax exemption for the first five years, and 50% exemption for the next five years.
+No Wealth Tax
+No wealth tax is levied on individuals or companies operating within GIFT City.
+Stamp Duty Benefits
+Reduced stamp duty of 0.005% on transfer of equity instruments of companies listed on the International Financial Services Centre (IFSC) in GIFT City, compared to the regular rate of 0.015% for other Indian companies.
+Goods and Services Tax (GST) Benefits
+Companies operating within GIFT City are eligible for a range of GST benefits, including zero-rated supply of goods and services, exemption from GST on imports of goods and services, and refund of GST paid on exports of goods and services.
+Customs Duty Benefits
+Companies operating within GIFT City are eligible for customs duty benefits, including exemption from customs duty on the import of goods and materials used for construction, operation, or maintenance of the IFSC and its units.
+Service Tax Benefits
+Companies operating within GIFT City are exempt from service tax on certain services, including transport of goods or passengers by rail, road, or air, and construction or maintenance of infrastructure within the IFSC.
+[email protected]
+More
+Here are some additional tax benefits offered by GIFT City:
+Dividend Distribution Tax (DDT) Benefits
+No dividend distribution tax is levied on companies located within GIFT City for dividend payments to shareholders.
+Central Sales Tax (CST) Benefits
+Companies operating within GIFT City are exempt from Central Sales Tax (CST) on the sale of goods to other states.
+Central Excise Duty Benefits
+Companies operating within GIFT City are eligible for exemption from Central Excise Duty on the manufacture of goods for export outside India.
+Value Added Tax (VAT) Benefits
+Companies located within GIFT City are exempt from Value Added Tax (VAT) on the sale or purchase of goods within the IFSC.
+Entry Tax Benefits
+No entry tax is levied on goods imported into GIFT City from other states within India.
+No Export Duty
+No export duty is levied on goods or services exported from GIFT City to other countries.
+No Octroi or Local Body Tax
+Companies operating within GIFT City are exempt from octroi or local body tax on the entry of goods into the IFSC.
+No Property Tax
+No property tax is levied on properties within GIFT City.
+No Electricity Duty
+Companies located within GIFT City are exempt from electricity duty on the consumption of electricity.
+No Entertainment Tax
+No entertainment tax is levied on events or activities conducted within GIFT City.
+[email protected]
+More
+Here are some additional tax benefits offered by GIFT City:
+No Capital Gains Tax
+No capital gains tax is levied on the transfer of securities, derivatives, and other financial instruments traded within GIFT City.
+No Securities Transaction Tax (STT)
+No Securities Transaction Tax (STT) is levied on transactions in securities, derivatives, and other financial instruments traded within GIFT City.
+No Commodities Transaction Tax (CTT)
+No Commodities Transaction Tax (CTT) is levied on transactions in commodities traded within GIFT City.
+No Transfer of Title Tax
+No transfer of title tax is levied on the transfer of immovable property within GIFT City.
+No Wealth Tax on Investments
+No wealth tax is levied on investments in securities, derivatives, and other financial instruments held within GIFT City.
+No Gift Tax
+No gift tax is levied on gifts made within GIFT City.
+No Estate Duty
+No estate duty is levied on inheritance of assets located within GIFT City.
+No Cess or Surcharge
+No cess or surcharge is levied on taxes payable by companies operating within GIFT City.
+No Minimum Alternate Tax (MAT) for Developers
+Developers of buildings or infrastructure projects within GIFT City are exempt from Minimum Alternate Tax (MAT).
+No Long-Term Capital Gains Tax on REITs
+Real Estate Investment Trusts (REITs) operating within GIFT City are exempt from long-term capital gains tax on the sale of properties held for more than three years.
 ==References==
@@ Line 309: / Line 511: @@
 ==External links==
-* {{Official website|http://giftgujarat.in/}}
+*{{Official website|http://giftgujarat.in/}}
-* [https://ifsca.gov.in/ International Financial Services Center]
+*[https://ifsca.gov.in/ International Financial Services Center]
-* {{YouTube|YynCpCEEMYU|"Financial Centres Of The World 2020: Focus On GIFT City, Gujarat"}}
+*{{YouTube|YynCpCEEMYU|"Financial Centres Of The World 2020: Focus On GIFT City, Gujarat"}}
 {{gujarat}}

GIFT City: Difference between revisions

GIFT City (edit)

Revision as of 15:57, 19 March 2023