Reliance Industries-Brookfield infrastructure investment trust (InvIT) is planning to raise more debt from foreign and ultra-high net-worth investors and offer attractive interest to them.
This will enable the investors to save on tax by investing via jurisdictions which have lower withholding tax rates on debt instruments.
As per industry sources, some tax-treaty countries, such as Singapore, have a withholding tax rate of 15 per cent, while there are a few jurisdictions where tax rate is as low as 7.5 per cent.
The budget had made InvITs and real estate investment trusts (REITs) unattractive for equity investors, which affected the plans of these trusts to raise money.
