Union Cabinet gives nod to India-Maldives double taxation Agreement on airlines
The Union Cabinet has given its approval for signing of an Agreement between India and Maldives for the avoidance of double taxation of income from international air transport.
This agreement provides relief from double taxation for airline enterprises operating between the two countries.
Under the agreement
- Airlines operating from India will be exempted from income derived from the operation of aircraft in international traffic in Maldives from Maldivian tax and vice-versa.
- Profits from the operation of aircraft in international traffic will be taxed in one country alone. The taxing right is conferred upon the country to which the enterprise belongs.
- Tax certainty for airline enterprises of India and Maldives will be provided. Mutual Agreement Procedure (MAP) will be also provided for resolving any difficulties or doubts arising as to the interpretation or application of the agreement.
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Month: Current Affairs - February, 2016