Foreign investors not pay capital weather today gains tax in other countrie

Capital outflows are near their highest-ever figure in India; a debate has raged over whether capital gains tax in India contributed to foreign investor outflows

Foreign investors pay 20 per cent or more as tax on capital gains in certain jurisdictions, including emerging market peers such as Brazil and Mexico, in addition to Saudi Arabia and Uzbekistan, according to data from tax consultancy network PwC.

 

The headline capital gains tax range for these jurisdictions varies from 20 per cent to 35 per cent for non-resident corporate investors.

 

A debate has raged over whether capital gains tax in India contributed to foreign investor outflows. 

 

“The biggest mistake they (the government) have made, the biggest souring of sentiment, and reality which they have to accept is capital gains tax in India, particularly the foreign investors, is 100 per cent wrong,” said Samir Arora, founder and chief investment officer of Helios Capital at the Business Standard Manthan Summit 2025.

  

“The largest investors in the world and in India are foreign sovereign funds, pension funds, universities, and high net worth individuals (HNIs). Taxing them on their gains, especially when they have no tax set-off available in their home country and when they face forex-related risks, is a big mistake that the government is making,” he had added.