India Proposes Easing Tax Rules for Multinationals in New Budget

India’s Finance Minister Nirmala Sitharaman outlined plans to streamline tax laws governing transactions among multinational groups in a prepared budget speech delivered Saturday.

Sitharaman was addressing a major demand for multinationals doing business in India—to simplify transfer pricing, which refers to how transactions are valued between related entities of a multinational group.

“To streamline the process of transfer pricing and to provide an alternative to yearly examination, I propose to introduce a scheme for determining arm’s length price of international transaction for a block period of three years,” said Sitharaman. “This will be in line with global best practices,” she ...