The Minister of Finance, Mr Harris Georgiades, on behalf of the Republic of Cyprus, and the High Commissioner of India in Cyprus, Mr Ravi Bangar, on behalf of the Republic of India, signed today, at the Ministry of Finance, an Agreement on the Avoidance of Double Taxation.
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.
Speaking to the Press after the signing of the Agreement, Minister Georgiades said that the completion and signing to this Agreement is 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”, Mr Georgiades said.
He added that “this step opens up new opportunities for an expansion of the already excellent political and economic ties between our countries. 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”.
Finally, the Minister of Finance thanked the High Commissioner of India, as well as the Indian Government for the supportive role and the efforts made for the completion of the Agreement. He also warmly thanked all the members of the negotiating teams both from the public and the private section that have worked towards this direction.
On his part, the Indian High Commissioner highlighted that the signing of the agreement marks a historic day between India and Cyprus relations. “This is a milestone for both countries to embark to a journey of further consolidating the gains of the past and open a new path for expanding the relations economically, commercially and investment-wise”.
Mr Bangar pointed out that the Indian economy is the fastest-growing economy in the world today with a growth rate of higher than 7%. It offers excellent opportunities for the businesses in Cyprus to plug into the Indian economy and benefit mutually in this engagement, he added.
Referring to the excellent existing relations between the two countries, the Indian High Commissioner announced that the Ministers of Commerce of Cyprus and India will exchange visits, thus further deepening the good relations of the two countries./IBNA