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. India To Remove Cyprus From Tax Blacklist

India To Remove Cyprus From Tax Blacklist

by Mary Swire, Tax-News.com, Hong Kong

04 July 2016


The Cypriot Government has said that India will soon remove the territory from its list of non-cooperative foreign tax jurisdictions following the renegotiation of their tax treaty.

Section 94A of India's Income Tax Act empowers the Government to "blacklist" any foreign territory that fails to effectively exchange information in tax matters with India.

In November 2013, India placed Cyprus on its list of notified jurisdictional areas for the purpose of Section 94A, complaining that the territory had failed to exchange tax information.

Cyprus is to be removed with retroactive effect to November 2013, after "the completion of the negotiation and the agreement reached on all pending issues," said Cyprus's Ministry of Finance, following a June 29 meeting in Delhi.

The Government said the new treaty will provide for source-based taxation of gains arising from the transfer of shares. A grandfather clause exists for investments undertaken prior to April 1, 2017. For these, the right to tax gains arising from the disposal of such shares at any future date will remain with the state of residence. India had also recently agreed a similar change to its tax treaty with Mauritius.

The Cypriot Ministry of Finance said: "The text has been agreed between the two negotiating teams of the contracting states and will contribute to further develop the trade and economic links between Cyprus and the Government of India, as well as with other countries. Upgrading and expanding the network of [tax treaties] is of high economic and political importance and aims to further strengthen and attract foreign investment in Cyprus as its standing an international business center is elevated."

TAGS: Finance | tax | investment | business | double tax agreement (DTA) | India | tax avoidance | law | enforcement | ministry of finance | tax authority | offshore | agreements | multinationals | legislation | tax planning | transfer pricing | Cyprus | tax reform | trade | Tax | BEPS

To see today's news, click here.

Leave a comment

Read our Posting Guidelines

plz

sehjal on Friday, September 23, 2016

 






Close

Password Reminder

Please enter your email address to receive a password reminder.

 

Log into Tax-News+
Not registered yet? Find out about our daily news alert service »

 Email: 
 Password: 

Login »

Forgotten your password?







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 »



Tax-News+ Updates

Receive FREE daily updates from Tax-News.com, straight to your inbox. Register Now!

For a tailored solution, choose to receive selected news updates for your preferred jurisdictions and topics, with our enhanced Tax-News+ subscriber service. Read more...

 

Stay Updated

Please enter your email address to join the Tax-News.com 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 »