Moneycontrol
Jan 05, 2017 02:23 PM IST IST | Source: Moneycontrol.com

FPIs may move to Europe to save tax after DTAA tweaks

Tax treaties or the Double Taxation Avoidance Agreements (DTAA) signed with the three nations, mean that FPIs will be taxed for their capital gains. Luckily for foreign investors, some European nations continue to offer tax exemptions.

Moneycontrol Bureau

Foreign Portfolio Investors may soon start operating from European countries like France, Spain and Netherlands after the government amended tax treaties with Singapore, Mauritius and Cyprus in 2016, reports The Economic Times.

The tax treaties or the Double Taxation Avoidance Agreements (DTAA) signed with the three nations, meant that FPIs will be taxed for their capital gains. Luckily for foreign investors, some European nations continue to offer tax exemptions.

Some smaller FPIs have already started shifting to Europe. But experts feel that shifting to European countries may only be a short-term positive and could pose even bigger hurdles for them as the government mulls denying treaty benefits with Europe.
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