📱 Big moves in the smartphone world! Apple is turning to New Delhi, asking the Indian government to tweak an old tax law so it won't get slapped with extra income taxes on the pricey machines it uses to build iPhones. Here's the lowdown:
Since 2022, iPhone's share in the Indian market has doubled to 8%, according to Counterpoint Research. At the same time, India's slice of global iPhone shipments has shot up from 6% to 25% – a fourfold jump! With India as the world's second-largest mobile market, Apple's contract makers like Foxconn and Tata are investing billions to open five new plants.
But there's a catch: India's Income Tax Act of 1961 treats Apple's ownership of high-end assembly machines as a "business connection," meaning any iPhone profit could get taxed in India. In the Chinese mainland, Apple owns these machines and lends them to manufacturers with no extra tax on profits. That loophole doesn't exist in India – yet.
Industry insiders say Apple fears billions in extra taxes unless New Delhi updates the law. "Contract manufacturers can't front unlimited capital," one source explains. "Changing this legacy rule would make it easy for Apple to scale up. India could become an even stronger player on the global stage." 🌏
At a glance: 🔹 Apple's goal: avoid double taxation for owning assembly gear 🔹 India's benefit: more investments, more jobs 🔹 Next step: talks with Indian officials to revise the 1961 law
The outcome of these discussions could redefine India's role in global tech manufacturing – turning it into a go-to hub beyond the Chinese mainland. Stay tuned as Apple and India work out the details of this potential game-changer! 👀
Reference(s):
Apple lobbies India to change tax law seen hindering its expansion
cgtn.com
