Cyprus and India have signed a Convention on the Avoidance of Double Taxation and the prevention of fiscal evasion with respect to taxes on income, the Finance Ministry announced on Thursday.
“On June 29th, 2016, the negotiation on the Double Taxation Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income between Cyprus and India was successfully completed, in New Delhi” the Ministry said.
Following the entering into force of the amending Agreement, the Indian Authorities will proceed with retrospectively rescinding the classification of Cyprus in the `Notified Jurisdictional Area` as of 1st of November 2013, the Ministry noted.
It stressed that the agreement will “further develop the trade and economic links between Cyprus and the Government of the Republic of India, as well as with other countries”.
The agreement reached provides for source based taxation for gains from the alienation of shares; investments undertaken prior to April 1st 2017 are grandfathered with the view that taxation of disposal of such shares at any future date remains with the contracting state of residence of the seller.
India, Cyprus ‘Successfully’ Complete Tax Treaty Negotiations
