Cyprus and India have signed a convention on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, the Finance Ministry has announced.
Once the agreement enters into force, the Indian Authorities will proceed with retrospectively rescinding the classification of Cyprus in the `Notified Jurisdictional Area` as of 1 November 2013, the Ministry noted.
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.
