SWF Mubadala Unit Gets Indian Tax Exemption
Posted on 11/03/2020
The Central Board of Direct Taxes (CBDT) has exempted dividend, interest, and long term capital gains made by sovereign wealth fund MIC Redwood 1 RSC Limited India from income tax subject to certain conditions. MIC Redwood 1 RSC Limited is a unit of Abu Dhabi-based Mubadala Investment Company.
This unique tax exemption is under clause 23 FE of section 10 of the Income Tax Act which allows sovereign wealth funds to invest in infrastructure projects in India subject to conditions including prohibition from undertaking any commercial activity within or outside India.