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
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