Cabinet approves Agreement and Protocol between India and Chile for avoidance of double taxation

Cabinet approves Agreement and Protocol between India and Chile for avoidance of double taxation
Cabinet approves Agreement and Protocol between India and Chile for avoidance of double taxation

Cabinet approves Agreement and Protocol between India and Chile for avoidance of double taxation



The MoU Highlight With Details:

The DTAA will facilitate elimination of double taxation. Clear allocation of taxing rights between Contracting States through the Agreement will provide tax certainty to investors & businesses of both countries while augmenting the flow of investment through fixing of tax rates in source State on interest, royalties and fees for technical services.


The Agreement and Protocol implements minimum standards and other recommendations of G-20 OECD Base Erosion Profit Shifting (BEPS) Project. Inclusion of Preamble Text, a Principal Purpose Test, a general anti-abuse provision in the Agreement along with a Simplified Limitation of Benefits Clause as per BEPS Project will result in curbing of tax planning strategies which exploit gaps and mismatches in tax rules.

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