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India’s Tax Laws, 2nd Most Complex in Asia-Pacific – Deloitte Survey

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As per the Asia Pacific Tax Complexity Survey conducted by professional services firm, Deloitte, India has the second most complex taxation system in the Asia-Pacific Region. This outcome is based on a survey of over 300 financial and tax executives in 20 countries across Asia Pacific. 147 of these respondents have business operations in India. The respondents were asked to give their views on the current and anticipated tax environment for their respective countries.

Highlights of Deloitte Survey:

  • As per the survey report, only China has more complex tax system than India. In this context, complexity refers to perceived level of difficulty in interpreting the tax law and rules.
  • In China and India, over 50% respondents believe that complexity in the tax India's Tax Laws, 2nd Most Complex in Asia-Pacific - Deloitte Surveyregime has increased in the last 3 years.
  • Over 90% of the respondents wish to see tax reforms in India, China and Indonesia.
  • Majority of the respondents believe that Indian tax system has become less consistent over the last 3 years. In this context, consistency refers to the perceived uniformity and transparency in enforcing prevailing tax laws.
  • 45% of respondents feel that tax audits conducted by Indian tax authorities are rigorous.
  • The report mentioned that rolling out of Goods and Services Tax(GST) will reduce complexity in tax environment by eliminating multiple taxes. However, over next 2-3 years, GST along with General anti-avoidance rule (GAAR) and adoption of Base Erosion and Profit Shifting (BEPS) actions, complexity will increase in Mergers & Acquisition (M&A) tax and Indirect Tax.

Top 5 Asia-Pacific Countries in terms of Tax Complexity:

Rank Country
1st China
2nd India
3rd Japan
4th Australia
5th Indonesia

About Deloitte:

Deloitte is a UK-incorporated multinational professional services firm offering services such as audit, tax, management consultancy, financial advisory, risk advisory and legal consultancy.

  • It was formed in the year 1845.
  • Deloitte’s operational headquarters is located in New York, US.
  • Deloitte is one of the Big Four” accounting firms along with KPMG, Ernst & Young and PricewaterhouseCoopers.