Angel tax: S'pore, Mauritius not in exempted list

Government identifies 21 countries, from which investments in domestic start-ups will not attract this tax

- UMA KANNAN

IN a surprise move, the tax department has excluded Singapore, Mauritius, Netherlands and Luxembourg from the list of countries exempted from the stricter Angel Tax rules implemented recently. These countries are the biggest contributors to foreign direct investments (FDI) in India.

In a notification issued late on Wednesday, the government identified 21 countries, investments from which will be exempted from the recent change in tax rules, bringing investments from overseas jurisdiction under the Angel Tax. The countries on the exempted list are Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany, Iceland, Israel, Italy, Japan, Korea, New Zealand, Norway, Spain, Sweden, the UK, the US and Russia.