The Ministry of Finance of the Republic of Cyprus announced the completion of the convention between Cyprus and India regarding the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, on Wednesday June 29th 2016, in New Delhi.
During its announcement the next day, the Ministry said that: “The completion of the negotiation and the agreement reached on all pending issues will pave the way for the removal of Cyprus from the list of notified jurisdictional areas place in November 2013.”
Based on the amending agreement between the two countries, the Indian Authorities will proceed with retrospectively rescinding the classification of Cyprus in the ‘Notified Jurisdictional Area’ as from 1st of November 2013, the Ministry added.
It also noted that the signed agreement will help to further develop the trade and economic links between Cyprus and the Government of the Republic of India, as well as with other countries. Additionally, according to the Ministry, this agreement “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.”
The Ministry of Finance of the Republic of Cyprus concluded by saying that upgrading and expanding the network of Double Tax Conventions, is of high economic and political importance and aims to further strengthen and attract foreign investment in Cyprus as its standing an international business centre is elevated.