Preferred nations lose exemption: Angel tax impact
Our Partner, Armaan Patkar, expresses his views in the Financial Express on angel tax and how this may incentivize investors in Singapore and Mauritius to consider CCDs as an alternative investment route.
Armaan mentioned that “Investors in these countries and investee companies may be forced to adjust valuations to avoid tax, despite having legitimate reasons for a valuation premium. This may incentivize such investors to explore CCD structures, particularly for investors in Singapore and Mauritius that would receive relief from capital gains tax under DTAAs. However, the risk that angel tax would apply when converting the CCDs looms large. As such, the proposed changes to tax valuation guidelines are eagerly awaited, as it may help companies bridge these valuation gaps.”
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