A recently signed income tax treaty between India and Mauritius may have implications for Singapore investors in India—in particular, given the treaty’s shift from a resident-based taxation to a source-based taxation.
Because the capital gains exemption under the India-Singapore income tax treaty is co-terminus with the India-Mauritius tax treaty, the provisions in the new India-Mauritius income tax treaty may have implications for persons under the India-Singapore tax treaty. For instance, the benefit of residence-based capital gains tax treatment under the India-Singapore tax treaty may also end. It is not known whether there would be any “grandfathering” or concession treatment available for the India-Singapore tax treaty.
Read a May 2016 report [PDF 410 KB] prepared by the KPMG member firm in Singapore: Protocol amending the India-Mauritius tax treaty – impact on Singapore investors
© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.