Double tax evasion deal signed with India

CYPRUS and India on Friday signed a double taxation and fiscal evasion agreement, paving the way for the island’s removal from the Asian country’s black list.

The agreement, signed by Finance Minister Harris Georgiades and the High Commissioner of India, Ravi Bangar, provides for source-based taxation for gains from the sale of shares.

Following the signing, Georgiades spoke of a “very important occasion”.
“The completion of the negotiation and the successful agreement on all pending issues pave the way for the removal of Cyprus from the list of Notified Jurisdictional Areas retrospectively as of 1st November 2013,” he told reporters.

He added that new opportunities open for an expansion of the already excellent political and economic ties between Cyprus and India. “And I do hope and I strongly believe that the signing of this agreement will indeed lead to the further development of commercial and economic links.”
The Indian diplomat said the signing of the agreement marked an historic day between India and Cyprus relations.

“This is a milestone for both countries to embark on a journey of further consolidating the gains of the past and open a new path for expanding the relations economically, commercially and investment-wise”.
Bangar pointed out that the Indian economy is the fastest-growing economy in the world today with a growth rate of higher than 7 per cent.
“It offers excellent opportunities for businesses in Cyprus to plug into the Indian economy and benefit mutually in this engagement”, he added.

“Now I think the ball is entirely in the hands of the business community,” he said.
The high commissioner announced that the ministers of commerce of Cyprus and India will exchange visits.

The agreement provides for source-based taxation for gains from the alienation of shares; investments undertaken prior to April 1, 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, a finance ministry news release said.

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, the press release said.