India and Cyprus have entered into a revised double taxation avoidance agreement (“Revised Treaty”) which will replace the existing agreement between the government of India and government of the Republic of Cyprus (“Existing Treaty”). The Revised Treaty is yet to be notified by India. The government of India through the Central Board of Direct Taxes has issued a press release highlighting the significant amendments. The Revised Treaty will come into effect once both countries ratify it.
This is a brief analysis of the Revised Treaty and the anticipated impact on existing and future investments between entities incorporated in India and Cyprus.