Implications for Mauritius following the revision of the
India-Mauritius Double Taxation Avoidance Agreement
In August 1982, a convention was signed between the Government
of Mauritius and the Government of India to avoid double taxation
and prevent fiscal evasion, with respect to taxes on income and
capital gains. It is known as the Double Taxation Avoidance
Agreement (DTAA), which sets out how income generated in one
country by residents of another country is taxed. The overall aim
is to prevent double taxation of income and capital gains, and to
encourage mutual trade and investment between India and
Mauritius.
The benefits
Tax incentives in the DTAA were necessary to attract foreign
investments in India. The DTAA provided close to $100 billion of
foreign direct investment (FDI) equity in India between 2000 and
2015 and accounted for 34% of FDI in India being channelled through
Mauritius. Without the DTAA, unemployment in India would have been
much higher.
