Welcome Progress In Resolving Information Exchange Issues With The Indian Tax Authorities

A delegation from Cyprus visited India towards the end of November 2013 in order to resolve the issues that had led to the Indian tax authorities' decision to designate Cyprus as a "notified jurisdictional area" (see our news item dated 12 November 2013). The talks between the representatives of the two countries focused on effective exchange of information and the renegotiation of the Cyprus-India double tax treaty.

It was agreed that the "notified jurisdictional area" status can be lifted immediately once effective mechanisms are put in place to allow the exchange of information by including the provisions of article 26 of the OECD Model Tax Convention in the Cyprus-India double tax treaty and by improving channels of communication in order to facilitate swift and effective responses to requests for information. Rescission of "notified jurisdictional area" status will have retroactive effect from 1 November 2013, the date when the notification was issued.