India charges second highest taxes from foreign cos: Forbes

New York, Mar 28 | Updated: Mar 30 2008, 04:15am hrs
India charges the second highest corporate tax from foreign companies, next only to the US (New York City), says the Forbes magazine.

India and Japan retain the second and the third highest corporate tax rates in the world, Forbes said in its Tax Misery Index published in its online edition.

India taxes foreign companies at a maximum rate of 42 % while Japan levies a corporate tax of 41 %. New York City imposes the highest corporate tax on 46.2 %, it said.

Although various emerging economies have been reducing the corporate tax to attract foreign companies, Asias biggest nations, including India, however, continue to charge high rates.

However, in terms of the Misery Index of Forbes, India ranks favourably at 35th position out of 50 countries, much above China, Japan and Brazil.

Indias Misery Index score at 89.5 % reveals that it offers an overall tax-friendly environment as compared to even developed countries in Europe and America.

Countries which offer better overall tax environment than India are Singapore, Pakistan and Hong Kong, the Index showed. The study further reveals that while France tops the Misery Index, Qatar provides the most tax-friendly environment to foreign companies.