A revised Cyprus – India double taxation treaty was successfully concluded and signed by both countries on 18th November 2016. The agreement is similar to that of Mauritius which entitles the Indian tax authorities to tax capital gains from investments going through Cyprus. The new Cyprus – India double tax treaty provides for a sourced-based taxation on profits from sale of shares. Indian authorities will have the right to tax capital gains from the sale of shares after April 1, 2017. Investments made prior to April 1, 2017 are exempt in the sense that taxing disposal of these shares at any future date remains with the Contracting State of residence of the seller
It is expected that the new Cyprus – Indian Double Taxation treaty will further develop the economic relationship between India and Cyprus. It is also expected that the new Cyprus, Indian double taxation treaty will make Cyprus even more attractive to foreign investments
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