Life science companies have to future-proof their value chain by placing functions, assets and risks in locations where they are planning to have their profits taxed. Structures where profit allocations are made in tax-beneficent locations with little or no substance are no longer viable.
At the moment there is no loss of appetite amongst investors. However, the fact that so-called secure investments offer poor yields has caused something of a belly ache. There is a clouded view of the future.
Continuing its course of encouraging foreign investment and as reaction to OECD’s BEPS plan, the Indian government announced at the annual Union Budget Day 2016 a number of reforms, especially addressing various pending tax issues and introducing new tax initiatives.