In 2025, companies operating in India will have to adapt to a number of tax innovations put in place to strengthen the economy. The government has implemented a number of important changes to consider in order to get the business right in terms of digitalization, tax incentives and tax compliance.
The first reform is that digitalization in auditing will be increased, with the use of Big Data and real-time analysis by tax authorities. Companies will be subject to more frequent automated audits, requiring updated accounting systems and regular internal audits to avoid sanctions.
Moreover, foreign companies that wish to benefit from double taxation agreements are required to submit Form 10F electronically. This change entails the need to register on the Indian tax portal, obtain a Permanent Account Number (PAN) and a Digital Signature Certificate (DSC). It is imperative for foreign entities to acquaint themselves with these procedures to ensure regulatory compliance.
Authorities will review and adjust tax incentives for strategic sectors, especially in technology, innovation and sustainability. It is incumbent upon companies to identify projects that can benefit from these incentives and to properly document investments in order to justify tax deductions.
The 2025 tax agenda places a significant emphasis on sustainability, with the introduction of higher taxes on polluting activities and tax incentives for investments in renewable energy and carbon footprint reduction. To access these benefits, companies will be required to audit their environmental impact and incorporate sustainable criteria into their strategies.
Finally, India will adopt the Global Minimum Tax of 15% proposed by the OECD, affecting multinationals with revenues exceeding 750 million euros. This measure is intended to reduce tax evasion and to balance the competitive landscape between domestic and foreign companies.
These tax developments reflect India’s commitment to a more transparent, sustainable economy that meets international standards. Therefore, if you wish to comply with Indian tax obligations, do not hesitate to contact Auxadi.
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Auxadi can become your ideal partner. We offer a one stop shop value added outsourcing services in the areas of accounting and reporting, tax compliance, payroll management and representation services, among others.
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All information contained in this publication is up to date on 2025. This content has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice.No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this content, and, to the extent permitted by law, AUXADI does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.