The increasingly globalized world permits investors to consider exploring foreign markets, allowing them to build a diversified portfolio, which not only helps them achieve their investment objectives but also provides attractive returns.
The Indian government offers foreign investors an opportunity to invest in Indian markets through the Foreign Portfolio Investor (FPI) route. The increasing attractiveness of the Indian economy and Indian securities, the large basket of securities in which FPIs can invest in, and easing of the regulatory framework have resulted in a steady increase in the number of FPIs registering in India and the quantum of FPI investments in India. While the returns from the Indian markets are attractive, FPIs need to ensure that they are tax compliant in India so that there are no surprises in the future, which could negatively impact the actual return earned from Indian securities.
Given the voluminous nature of transactions undertaken by FPIs daily, efficiency in tax compliances and tax costs are imperative factors for FPIs to optimize their post-tax returns.
With an in-depth understanding of the tax and regulatory framework applicable to FPIs, the Nexdigm FPI team provides a complete bouquet of taxation services to FPIs comprising of advisory services (including advise on structuring investments into India in a tax-efficient manner), day-to-day accounting of transactions, compliance services (tax returns and remittance certificates), and representation before the tax and regulatory authorities.