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Cabinet Gives Nod To Signing Double Taxation Avoidance Agreement With Hong Kong

The Cabinet today gave its green light to an agreement between India and the Hong Kong Special Administrative Region (HKSAR) of China for avoiding double taxation and prevention of tax evasion.

The Cabinet, chaired by Prime Minister Narendra Modi also approved the protocol amending the agreement between India and Kyrgyzstan to avoid double taxation and prevention of fiscal evasion with respect to taxes on income.

The Double Taxation Avoidance Agreement (DTAA) with Hong Kong will stimulate flow of investment, technology and personnel, prevent double taxation and provide for exchange of information between the two contracting parties, an official release said. It will help improve transparency on tax matters and curb tax evasion and avoidance, added the release.

Another release said that new clauses are being added to the existing DTAA on Kyrgyzstan agreement regarding the exchange of information.

“The Protocol further empowers India to use information received under the DTAA to be used for other law enforcement purposes on the supplying State authorising such use,” it said.

Meanwhile, the Cabinet also gave its approval for signing a Joint Interpretative Declaration (JID) between India and Colombia on the existing Agreement for the Promotion and Protection of Investments between the two countries signed in November 2009.

The JID will impart clarity to the interpretation of the existing agreement, said another release.

Joint Interpretative Declarations and Statements in general play an important supplementary role in strengthening the investment treaty regime, it added.

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