India Signed a New DTAA with Malta at Valetta

                  India & Malta signed the new Double Taxation Avoidance Agreement (DTAA) on 8^th April 2013 at Valetta, Malta after Preneet Kaur, who is the current Minister of State for External Affairs of India visited Malta to strengthen mutual bonding between the two countries.

The basic objective of DTAA is to avoid, taxation of income in both the countries and to promote and foster economic trade and investment between the two countries. It will also boost the flow of capital, technology and personnel between India & Malta and will eventually develop the financial relationship between both the countries. It will also stable the tax system & will reduce any obstacles in providing mutual bilateral cooperation between India and Malta.

The advantages of DTAA are as under,

          Complete Exemption of Income from Taxes

          Tax Sparing Credits

          Lower Withholding Taxes (Tax Deduction at Source)

          Underlying Tax Credit

          Tax Sparing Credits

Double taxation is still one of the major obstacles to the development of inter-country economic relations. Nations are often forced to negotiate and accommodate the claims of other nations within their heavily guarded fiscal jurisdiction by the means of double taxation avoidance agreements, in order to bring down the barriers to international trade. It has to be mentioned here that few days back India signed a DTAA with Bhutan to share banking and tax Information.

The purpose of DTAA is not only to avoid double taxation but also pave a way for the exchange of financial and tax information among India & Malta, Furthermore, both the countries will also help the countries gain global economic recognition. Generally, the stated objective of bilateral tax between India & Malta is to prevent the burden of double taxation on residents of one country as well as prevent tax evasion by residents of one country when they earn income in another country.

DTAA and the agreement among the Republic of India and Malta considering the escape of repeated taxation and restraint of fiscal evasion with respect to taxes on income is in force since 8th February, 1995. Both the countries India and Malta prolonged the Agreement to bring in line with international standards, change in domestic laws and changed economic scenario.

Do you like this article and want to stay updated with all the Latest Current Affairs updates? If yes then please take a second to Subscribe via Email or join our G+ Community. You can send your queries, suggestions to us by accessing this Contact Us Form, or you can play Current Affairs 2013 Quiz too.