Hong Kong may emerge as new FII hotspot

India and island city have agreed on a new double-tax avoidance treaty, which is likely to be notified soon

Global financial hub Hong Kong is likely to emerge as the new gateway for overseas investors looking to invest in India, piping traditional destinations such as Singapore and Mauritius.  

According to sources, India and Hong Kong have agreed on a new double-tax avoidance agreement (DTAA), which is likely to be notified soon. 

The terms of the agreement provide investments from Hong Kong privileges on a par with Singapore and Mauritius.  But, unlike the latter two, compliance with the tax avoidance laws is also easy for funds coming from Hong Kong as a majority of them already have a proper business