NITI Aayog Releases NITI Tax Policy Working Paper Series-I to Enhance Foreign Investment:

NITI Aayog’s new tax paper proposes a simpler, optional tax scheme to make India more attractive and predictable for foreign investors.

NITI Aayog Introduces Optional Tax Scheme to Attract Global Investors

Saloni Kumari

Oct 4, 2025

Last update on Oct 4, 2025

NITI Aayog Releases NITI Tax Policy Working Paper Series-I to Enhance Foreign Investment The NITI Aayog (Government of India) has released the NITI Tax Policy Working Paper Series-I titled “Enhancing Tax Certainty in Permanent Establishment and Profit Attribution for Foreign Investors in India.” At the launch, the representatives of CBDT, DPIIT, ICAI, and CBC were present, along with domain experts from Lakshmikumaran and Sridharan, Deloitte, EY, and others. The paper provides solutions to the long-standing concerns of foreign investors on tax predictability and dispute resolution to strengthen India’s investment climate. The CEO of BVR Subrahmanyam, NITI Ayog, has said, addressing the media, that this issuance aims to launch an Optional Presumptive Taxation Scheme that offers a simpler and more predictable way for foreign companies to pay their dues. He emphasised that under this policy, companies will not need to go through long and detailed tax audits. Instead, they can choose to pay tax as a fixed percentage of their total revenue, based on their industry type. This optional system will help reduce legal disputes, lower adherence costs, and ease the process of establishing businesses in India. Below is the link to the official PDF for NITI Tax Policy Working Paper Series-I, released by NITI Aayog.

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Saloni Kumari

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Saloni is a Content Writer with 2+ years of experience at studycafe.in. She writes legal, taxation, and finance related content including GST, Income Tax etc. Skilled in translating complex judicial pronouncements and regulatory developments into clear, and reader-friendly articles. Experienced in covering judgements of ITAT, High Court, GSTAT, and news related to Income Tax, GST, and corporate law. She can be reached at [email protected].