Cabinet gives nod to signing of DTAA with Hong Kong

The Cabinet today gave its green light to entering into an agreement between India and the Hong Kong Special Administrative Region (HKSAR) of China for avoidance of 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 for avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.
The agreement 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 also improve transparency on tax matters and help curb tax evasion and avoidance.
About Kyrgyzstan, an another release said new clauses are being inserted into the existing DTAA on 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.