Revision Of Double Taxation Avoidance Agreement

Posted on Tuesday, October 5th, 2021 at 9:38 am

The agreement between the Government of the Russian Federation and the Government of the Republic of Albania for the avoidance of double taxation of taxes on income and capital DBA may be either comprehensive to cover all sources of income, or in certain areas such as the taxation of income from navigation, air transport, of the estate, etc. India has DTAs from more than eighty countries, whose comprehensive agreements include those with Australia, Canada, Germany, Mauritius, Singapore, the United Arab Emirates, the United Kingdom and the United States. The outcome of the discussions with the Netherlands is not yet known, but it is worth preparing and we should therefore expect the treaty with the Netherlands to be amended in the same way. We understand that Russia also had earlier discussions with the Netherlands on clarifying other tax issues related to double taxation treaties. The outcome of these discussions is not known, also taking into account the Dutch internal market compared to other jurisdictions. It is possible that Russia and the Netherlands will reach an agreement for the amendments to enter into force in 2021. New requirements introduced by the multilateral instrument (e.g. B examination of the main objective, the minimum participation period of 365 days for dividends, etc.) should be included in the renegotiated treaty. India has recently amended its double taxation agreement (DBAA) with Mauritius to fill some gaps. Now, a Mauritian company has to pay capital gains tax, while it sells shares in a company in India from April 2017. Previously, the company could avoid taxes because it was not “resident” in India.

It could also move away from the helmsman in Mauritius, as capital gains are not taxed for its inhabitants. As a result, many Shell companies have sown in Mauritius to benefit from investments in India and without paying taxes. The favourable tax treatment of capital gains under some DBAas, such as the one with Mauritius, has favoured many foreign investments in India. Between April 2000 and December 2015, Mauritius accounted for $93.65 billion, or one-third of total FDI flows to India. . . .

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