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yesterday

Apple Presses India to Revise Tax Law on Factory Equipment Ownership

Officials are weighing the request carefully because any change could curb India's ability to tax foreign profits.

People wait in a queue outside an Apple retail store, as the iPhone 17 series goes on sale, in New Delhi, India, September 19, 2025. REUTERS/Bhawika Chhabra
A customer compares his old iPhone with the newly launched iPhone 17 pro max at an Apple retail store in Delhi, India, September 19, 2025. REUTERS/Bhawika Chhabra
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Overview

  • Apple is seeking modifications to the Income Tax Act so that owning iPhone assembly machines at contract manufacturers does not create a taxable “business connection.”
  • Apple executives have held talks with Indian officials in recent months, and a senior official confirmed that discussions on the tax issue are ongoing.
  • Tax specialists cite a 2017 Supreme Court ruling in the Formula One case to warn that Apple could face billions in Indian taxes if it retains control over machines inside local factories.
  • India’s share of global iPhone shipments has climbed to about 25% since 2022 as Foxconn and Tata invested more than $5 billion to open five manufacturing facilities.
  • The industry group ICEA has submitted a confidential request for legal clarity on equipment ownership, and Apple as well as India’s IT and finance ministries declined to comment.