The Export Promotion Deduction, established under Section 41 of the Investment Promotion Act 1986, serves as a crucial incentive for businesses engaging in export activities. This deduction aims to encourage and support businesses in their efforts to expand their market reach beyond domestic borders, thereby contributing to economic growth and development.
Objectives:
- To provide clarity on the criteria for businesses to qualify for the Export Promotion Deduction.
- To outline the types of expenses that are considered eligible for deduction under this scheme.
- To discuss any amendments or updates to the Income Tax (Export Promotion) Rules and clarify the claim limits for certain expenses.
Benefits:
- Provides businesses with a financial incentive to invest in export-related activities, reducing their taxable income and increasing their competitiveness in international markets.
- Encourages businesses to invest in innovation and quality improvement, enhancing their products or services for global markets.
- Promote compliance with tax regulations and enhance transparency in financial reporting, fostering trust between businesses and regulatory authorities.