Monday, November 13, 2017
The Indian Government last week announced various developments relating to double taxation agreements (DTAs).
In a statement dated November 10, it was announced that the Cabinet, chaired by Prime Minister Narendra Modi had given its approval for entering into a DTA with Hong Kong.
"The Agreement will stimulate flow of investment, technology, and personnel from India to Hong Kong and vice versa, prevent double taxation, and provide for exchange of information between the two Contracting Parties. It will improve transparency in tax matters and will help curb tax evasion and tax avoidance," the Government announced.
Additionally, the Government reported that the Cabinet has approved a protocol amending the Agreement between India and Kyrgyzstan The Protocol amending the DTA updates Article 26 of the agreement, relating to exchange of information to current international standards.
The Indian authorities explained that: "The updated article provides for exchange of information to the widest possible extent. The new paragraphs 4 and 5 being inserted into the existing Article 26 of the DTAA provide that the state from which information is requested cannot deny information on the ground that it has no domestic tax interest in that information or that the information requested is held by a bank or a financial institution, etc."