On June 29th, 2016, Cyprus and India successfully completed their negotiations on the Double Taxation Agreement ("DTT") for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income.
The conclusion of the agreement allows the initiation of the process for the removal of Cyprus from the list of “Notified Jurisdictional Area” to which Cyprus was included in November 2013.
The agreement provides for taxation on capital gains from the alienation of shares; it is noted that there is a grace period for investments made prior to April 1st 2017 so that any taxation of the future disposal of these investments remains with the contracting State of residence of the seller.
The said agreement is expected to contribute to the further development of trade and economic relations between the two countries.
