Resource information
The study is in two parts, part one
covering the various policy aspects of Corporate Income Tax
(CIT) and includes issues such as expenses and deductions to
determine the tax base, transfer pricing, thin
capitalization, taxation of special entities, and tax
incentives. All this is done in the backdrop of
international experience of corporate income taxes applied
globally. Finally, alternatives for rate rationalization and
their impact on CIT revenues using a forecasting model are
examined. The existing provisions of the law are referenced
in this part of the study as well, and further scope for
reform discussed as necessary. Part two of the study
presents a similar analysis of value added tax as well as
forecasting of VAT revenues. This chapter examines the
present rate structure including zero-rating, exemptions and
exclusions from VAT, and VAT refunds. Taxation of some
special sectors such as agriculture, real estate and exports
is also analyzed. All this is again done in the milieu of
international experience of value added taxes in
Organization for Economic Co-operation and Development
(OECD) countries, Brazil, Russia, India, China and South
Africa (BRICS) countries and the countries of ASEAN so as to
get a practical and realistic picture. Finally, a revenue
forecasting model for VAT is presented with a guideline for
estimating VAT threshold for exempting small traders. All
the chapters make reference to the present provisions in law
and also the way forward to further strengthen and
streamline the VAT.
