Income Tax Rates | Foreign Companies | FY 2017-18 | AY 2018-19

Income Tax Rates | Foreign Companies | FY 2017-18 | AY 2018-19

Income tax rates for companies other than domestic companies (i.e. foreign companies) in respect of FY/ PY 2017-18 (AY 2018-19), subject to application/ addition of education cess and surcharge, are as under:

Nature of Income Income Tax Rate
Royalty received from Government or an Indian concern in pursuance of an agreement made with the Indian concern after March 31, 1961, but before April 1, 1976, or fees for rendering technical services in pursuance of an agreement made after February 29, 1964 but before April 1, 1976 and where such agreement has, in either case, been approved by the Central Government 50%
Any other income 40%


To arrive at total income tax liability of a foreign company, the education cess and surcharge are to be applied, as under:

i) education cess/ secondary and higher education cess @ 3% in all cases; and

ii) surcharge @ 2% / 5% in cases where total income of the Foreign company is above Rs. 1 crore but below Rs. 10 crore/ above Rs. 10 crore, subject to provisions relating to marginal relief, if applicable.

Related Posts:

Income Tax Slabs/ Rates: Income Tax Cess, Surcharge & Rebate
Resident Individuals Education Cess Rates
NRIs/ HUFs/ AOP/ BOI/ AJP Surcharge Rates
Partnership Firms and LLPs Marginal Relief from Surcharge on Income Tax
Domestic Companies Income Tax Rebate u/s 87A for Individuals
Foreign Companies
Co-operative Societies
Local Authorities

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