India today signed a Double Taxation Avoidance Agreement (DTAA) with Fiji for the prevention of fiscal evasion with respect to taxes on income.
"The agreement will provide tax stability to the residents of India and Fiji and facilitate mutual economic cooperation as well as stimulate the flow of investment, technology and services between India and Fiji," Finance Minister P Chidambaram was quoted as saying by an official statement after signing the agreement.
On behalf of the government of Fiji, Attorney General and Minister of Justice Aiyaz Sayed-Khaiyun signed the agreement.
Chidambaram further said that the agreement incorporates provisions for an effective exchange of information and assistance in collection of taxes between tax authorities of the two countries including exchange of banking information.
The DTAA provides that business profits will be taxable in the source State if the activities of an enterprise constitute a permanent establishment in the source state, the statement said.
It also incorporates anti-abuse provisions to ensure that the benefits of the Agreement are availed of only by the residents of the two countries and to prevent any abuse of treaty, the statement added.
