The latest revision in tax agreement between India and Cyprus will provide a boost to investment flows. Cyprus will increase its investments in India’s fast growing economy after the deadlock over a revised tax treaty was resolved. Earlier India had blacklisted Cyprus as a non-cooperative country in 2013 for not sharing tax information.
“Following the Double Tax Avoidance Treaty that the two countries entered into last November and the removal of Cyprus from the list of notified jurisdictional area, we will strengthen economic and commercial cooperation. We will sign bilateral agreements and memoranda of understanding in areas of merchant shipping, air services, agriculture, education and culture.” Cyprus President Nicos Anastasiades said at an event.
An updated double taxation avoidance agreement (DTAA) was signed between Cyprus and India in 2016. The revised version targets to avoid the burden of double taxation for civilians of the two countries in order to encourage the flow of investment, technology and services.
Cyprus is one of the fastest growing European nations that provide investment opportunities in various sectors. The recently signed DTAA will further help to strengthen economic ties, particularly in the field of investment.
"I understand that the pending issue of revision of the double taxation avoidance agreement (DTAA) has been resolved and the long-pending request of notified jurisdiction area has been accommodated. This will pave the way for Cyprus to invest more in India, not just in portfolio investment, but in key segments like manufacturing and other sectors” Minister of State for Finance Arjun Ram Meghwal said at the India-Cyprus business session.
Cyprus is the 8th biggest investor in India with collective FDI of over $8.5 billion in a variety of sectors like financial leasing, stock exchange, manufacturing industries, real estate etc.
President Anastasiades said that a number of bilateral agreements and Memoranda of Understanding will be signed in the fields of merchant shipping, air services, agricultural cooperation, education and culture during his visit to India. According to him these areas of cooperation are some of those that have the potential to significantly boost their economic and commercial exchanges.
May 02, 2017