The Ministry of Finance of the Republic of Cyprus has announced that the negotiations regarding the new Double Tax Treaty (DTT) between Cyprus and India have been successfully completed in New Delhi.
This achievement is of particular significance as following the entry into force of the amending agreement the Indian Authorities will proceed with retrospectively removing Cyprus from the ‘Notified Jurisdictional Area’ list. The new Double Tax Agreement for the avoidance of double taxation is therefore expected to facilitate and thereby encourage the commercial and investment relations between the two countries.
According to the announcement, the Double Tax Treaty provides among others:
“for source based taxation for gains from the alienation of shares”;
and that “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”.
If you require further information on the said Double Tax Agreement and on how you can implement it in your tax planning strategy, please get in touch with our team.