Double Taxation Agreement With India

The term “double taxation” may also refer to the double taxation of income or activity. For example, corporate profits may be taxed first if they are earned by the entity (corporation tax) and, in turn, when the profits are distributed to shareholders in the form of dividends or other distributions (dividend tax). However, foreign companies established in countries with which India has a DBAA can claim more advantageous provisions and rates between the Income Tax Act and the DBAA. It is not uncommon for a company or individual established in one country to make a taxable profit (income, profits) in another country. It may happen that a person has to tax this income on the spot and in the country where it was obtained. The stated objectives of concluding a convention often include reducing double taxation, eliminating fiscal evasion and promoting the efficiency of cross-border trade. [2] It is generally accepted that tax treaties improve the security of taxable persons and tax authorities in their international transactions. [3] Administrative costs or similar payments which the head office of a Contracting State receives in its capacity as manager of a company established in the other Contracting State shall be taxed in that other Contracting State. In other words, directors` fees are taxable in the country where the company paying the fees is established. Below is a complete list of countries with a DBA with India and their respective withholding tax rates: A DBAA between India and other countries only applies to the inhabitants of India and the inhabitants of the country under negotiation. Any person or company that does not reside in India or the other country that has an agreement with India is not entitled to benefits under the signed DBAA. This article provides a brief analysis of the Double Taxation Convention (DBA) between Singapore and India.

Note that the information provided is intended for general guidance only and should not replace professional advice. A DBA between Singapore and another jurisdiction serves to avoid double taxation of income received in one jurisdiction by a resident of the other jurisdiction. In the United States, a person can legally have only one residence. . . .