A double taxation avoidance agreement (DTAA) between India and Cyprus, which currently provides foreign investors with a capital gains tax exemption, could be coming to an end. Reports in the Economic Times suggest an amendment will be made to the treaty to remove the tax exemption. The change could mean that individuals as well as corporate entities based in Cyprus would have to pay 10% capital gains tax.
The report suggests that the Indian government is also looking to bring similar amendments to the India-Mauritius DTAA. Mauritius has already abolished such concessions in its tax treaty with China.