India's new safe harbour rules impact multinationals' tax strategies
pre-market1 source ↓written by the desknot a recommendation
- introduction
- 15.5% safe harbour margin
- or transition
- 16.5% to 18.5%
The introduction of a 15.5% safe harbour margin for IT and ITeS services in the 2026 union budget is prompting multinationals and global capability centres (GCCs) to reassess their transfer pricing strategies. Companies face critical decisions on whether to maintain existing APA margins of 16.5% to 18.5% or transition to the new regime. This shift could significantly alter tax planning and compliance for affected firms.
• 15.5% safe harbour margin introduced
• Existing APA margins range from 16.5% to 18.5%
• Multinationals must reevaluate tax strategies
Immediate implications may include increased scrutiny from foreign tax authorities and adjustments in operational costs.
Not investment advice. For informational purposes only.