India and Albania Monday signed an agreement to avoid double taxation and prevent fiscal evasion in a bid to facilitate bilateral investments.
The two countries signed an agreement "for avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital", said the finance ministry.
Under the terms of the agreement, business profits will be taxable in the source country if the activities of an enterprise constitute a permanent establishment in the source state.
"The agreement will provide tax stability to the residents of India and Albania and will facilitate mutual economic cooperation between the two countries," the ministry said in a statement.
"It will also stimulate the flow of investment, technology and services between India and Albania," it said.
Chairperson of the Central Board of Direct Taxes (CBDT) Sudha Sharma signed the agreement on behalf of the Indian government, while Fatos Kerciku, Albanian ambassador in India, inked the deal from the Albania side.
