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India safe harbour rules force multinationals to rethink tax margins and APA choices

Economy
Published on 7 May 2026
India safe harbour rules force multinationals to rethink tax margins and APA choices

Existing APAs may be opt out or stuck waiting

India’s new safe harbour framework for IT and ITeS is triggering fresh tax dilemmas for multinational firms and GCCs. The regime sets lower acceptable margins, pushing companies with existing Advance Pricing Agreements to decide whether to opt out. Others with pending APA applications are waiting for guidance on how their cases will fit the new rules.

  • Safe harbour for IT and ITeS sets lower margins
  • Firms with existing APAs face an opt out decision
  • Pending APA applicants are seeking clarity on applicability
Read the full story at The Economic Times

This summarization was done by Beige for a story published on The Economic TimesThe Economic Times

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