Newsletter January 2017
Post-negotiations of Indian tax treaties: Mauritius sizzles as the preferred jurisdiction for investment in India
10th May 2016 was marked by the culmination of negotiations surrounding the India-Mauritius1 Double
Taxation Avoidance Agreement (“DTAA”) when a protocol amending the DTAA was signed by both states.
Shortly afterwards, the Indian authorities who have embarked on a crusade to overhaul their
international tax treaty regime, wrapped up negotiations with Cyprus on 18th November 2016 when a
revised India-Cyprus DTAA was signed, followed by the conclusion of a protocol amending the DTAA
between India-Singapore on 30th December 2016.
Following the signing of the revised India-Cyprus DTAA in November 2016 and the rescission on 14th
December 2016 of the notification that it previously served to Cyprus in November 2013 for being a
non-cooperative jurisdiction for failure to provide information requested under the relevant
provisions of the treaty, investor confidence in the use of treaty jurisdictions has been further
enhanced.
It will be recalled that in 2005, the India-Singapore DTAA had been amended such that the benefits
pertaining to capital gains would be co-terminus with the similar benefits proffered under the
India-Mauritius DTAA. It therefore came as no surprise that the India-Singapore DTAA was
subsequently revised in 2016.
Mauritius is now poised to regain its supremacy as the jurisdiction of choice for investors seeking
to invest in India, as depicted in the table on the next page:
To read in full please use the following link: