CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Cyprus, India Tax Treaty To Take Effect In 2017

Cyprus, India Tax Treaty To Take Effect In 2017

by Mary Swire,, Hong Kong

28 December 2016

The revised double tax avoidance agreement between India and Cyprus will take effect from April 1, 2017, India's Central Board of Direct Taxes has announced.

According to the CBDT, both countries have now exchanged notifications informing the other of the completion of their respective ratification procedures for the revised agreement to take effect.

The revised text, which was signed on November 18, 2016, provides for source-based taxation of capital gains arising from the alienation of shares. A grandfathering clause has been provided for investments made prior to April 1, 2017, in respect of which capital gains would continue to be taxed in the residence country.

The revised treaty also provides for a reduction in withholding tax rates from 15 percent to 10 percent on royalties, and expands the definition of "permanent establishment." The Article on the exchange of information is updated in line with the latest international standards and a new article to facilitate collection of taxes has been introduced.

The CBDT also announced that India has removed Cyprus from its list of non-cooperative foreign tax jurisdictions following the revision of their tax treaty. In 2013, India placed Cyprus on its list of notified jurisdictional areas for the purpose of Section 94A of the Income Tax Act, complaining that the territory had failed to exchange tax information.

TAGS: tax | investment | business | double tax agreement (DTA) | India | tax avoidance | royalties | law | enforcement | ministry of finance | tax authority | tax planning | transfer pricing | tax rates | withholding tax | Cyprus | tax reform | standards | trade | Tax | BEPS

To see today's news, click here.


Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »

Stay Updated

Please enter your email address to join the mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.

To manage your mailing list preferences, please click here »