The Double Taxation Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income between Cyprus and India was signed today by the representatives of the two countries. On behalf of the Republic of Cyprus, Minister of Finance Mr. Harris Georgiades signed the Treaty and on behalf of the Republic of India, India’s High Commissioner in Cyprus Mr. Ravi Bangar, signed the Treaty.
Following the entering into force of the signed Agreement the Indian Authorities will proceed provides certainty and stability to prospective investors with retrospectively rescinding the classification of Cyprus in the 'Notified Jurisdictional Area' as from 1st of November 2013. The text has been agreed between the two negotiating teams of the Contracting States and will contribute to further develop the trade and economic links between Cyprus and the Government of the Republic of India, as well as with other countries.
The agreement reached 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. 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 center is elevated.