FPIs may move to Europe to save tax after DTAA tweaks

Moneycontrol BureauForeign 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.