The Union Cabinet on Wednesday approved the signing of a protocol amending the convention between India and Brazil for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.
An official release said the updation of the Double Taxation Avoidance Convention's (DTAC) provisions to international standards, the amending protocol between India and the Federative Republic of Brazil will facilitate the elimination of double taxation.
Clear allocation of taxing rights between contracting states through DTAC will provide tax certainty to investors and businesses of both countries.
The amending protocol will augment the flow of investment through lowering of tax rates in source state on interest, royalties and fees for technical services.
The release said that the amending protocol implements minimum standards and other recommendations of the G-20 OECD Base Erosion Profit Shifting (BEPS) project.
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