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Cyprus and India discuss new double taxation deal


05/12/2013
Current DTA between the two countries has been in force since December 21, 1994
Cyprus and India are a step closer to agreeing on a new DTA after a Cypriot delegation visited New Delhi last week, said the Finance Ministry.
On November 1, 2013, India labeled Cyprus a “notified jurisdictional area”, effectively overturning the original tax agreement between the two countries, after deeming that Cyprus had failed to provide information requested by the Indian tax authorities.
According to the ministry statement, during last week’s consultations, the Cypriot and Indian delegations agreed that Cyprus could address the reasons India suspended the DTA between the two countries with two steps.
First, by agreeing to adopt the provisions of Article 26 of OECD Model Tax Convention relating to exchange of information.
The second step agreed is to improve the channels of communication between India and Cyprus.
It was further agreed that once the notification of Cyprus as a “notified jurisdictional area” is rescinded, it will be with retrospective effect from November 1, 2013, when India issued its decision on Cyprus.
cyprus-mail.com
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