Double Taxation Avoidance Agreement (DTAA) Double taxation is the levying of tax by two or

more jurisdictions on the same declared

income (in the case of income taxes), asset (in the case of capital taxes), or financial transaction (in the case of sales taxes). This double liability is often mitigated by tax treaties between countries.

It is not unusual for a business or individual who is resident in one country to make a taxable gain (earnings, profits) in another.
This person may find that he is obliged by domestic laws to pay tax on that gain locally and pay again in the country in which the gain was made. Since this is inequitable, many nations make bilateral double taxation agreements with each other. In some cases, this requires that tax be paid in the country of residence and be exempt in the country in which it arises. In the remaining cases, the country where the gain arises deducts taxation at source ("withholding tax") and the taxpayer receives a compensating foreign tax credit in the country of residence to reflect the fact that tax has already been paid. To do this, the taxpayer must declare himself (in the foreign country) to be non-resident there. So the second aspect of the agreement is that the two taxation authorities exchange information about such declarations, and so may investigate any anomalies that might indicate tax evasion.

India-Mauritius: Avoiding Double Taxation

Facilitating foreign investment in india Mauritius: a business hub Mauritius launched a global banking scheme in 1989 India-mauritius dtaa

Investing into India through Mauritius an excellent platform sophisticated legislation and regulations The Securities Act 2005

The Regulations Investment Schemes (CIS) and Closedend funds (CEF).

Difference between a CIS and a CEF

Hedge fund vehicles

licenced in Mauritius.
common funds formed for investment into India

Professional CIS offer their interests either to sophisticated investors or as private placements.
Specialised CIS funds invest in real estate, derivatives, commodities or other products authorised by the FSC.

Expert Funds are only available to investors who either make a minimum initial investment of over USD100,000 or qualify as a sophisticated investor, as defined by the Act. subject to varying levels of supervision by the FSC

Hedge funds investing into India are commonly set up as either a Professional CIS or
Private equity/venture capital funds

While standalone structures are common

masterfeeder hedge fund structures, side

Often, the feeder funds are formed in

Mauritius combines the traditional advantages of being an offshore financial center While the fiscal advantages offered by its tax treaties play

The jurisdiction enjoys Mauritius has rapidly developed as Each of the big four auditing firms have large offices

There are several large fund administrators

Mauritius also has a hybrid legal system consisting of British common

company/commercial legislation.

Investment protection

Current Tax Regime

companies, and Mauritius companies

80% of the Mauritius

no capital gains tax and

Potential changes to Tax Treatment

Direct Tax Code India/Mauritius

A revised Discussion Paper was released in June 2010

tax payer under a DTAA to be not applicable under general antiavoidance rules. draft form

of Indian Law regarding the enforceability

amended India/Mauritius DTAA

The Limited Partnerships Bill, 2009

Agreement for avoidance of double taxation and prevention of fiscal evasion with Singapore

entered into force on 27th May, 1994

taxes on ARTICLE ARTICLE ARTICLE ARTICLE ARTICLE ARTICLE property income, 1 : Personal scope 2 : Taxes covered 3 : General definitions 4 : Resident 5 : Permanent establishment 6 : Income from immovable -

ARTICLE 7 : Business profits ARTICLE 8 : Shipping and air transport ARTICLe 9 : Associated enterprises Article 10 : Dividends Article 11 : Interest Article 12 : Royalties and fees for technical services ARTICLE 13 : Capital gains ARTICLE 14 : Independent personal services ARTICLE 15 : Dependent personal services ARTICLE 16 : Directors fees ARTICLE 17 : Artistes and sportspersons ARTICLE 18 : Remuneration and pensions in respect of Government service ARTICLE 19 : Non-Government pensions and annuities ARTICLE 20 : Students and trainees

ARTICLE 21 : Teachers and researchers ARTICLE 22 : Income of Government ARTICLE 23 : Income not expressly mentioned ARTICLE 24 : Limitation of relief ARTICLE 25 : Avoidance of double taxation ARTICLE 26 : Non-discrimination ARTICLE 27 : Mutual agreement procedure ARTICLE 30 : Entry into force ARTICLE 31 : Termination -

ARTICLE 1 : PERSONAL SCOPE - This Agreement shall apply to persons who are residents of one or both of the Contracting States. ARTICLE 2 : TAXES COVERED - 1. The taxes to which this Agreement shall apply are : (a) in India : income-tax including any surcharge thereon (hereinafter referred to as Indian tax) ; (b) in Singapore : the income-tax (hereinafter referred to as Singapore tax).

ARTICLE 3 : GENERAL DEFINITIONS - 1. In this Agreement, unless the context otherwise requires :

ARTICLE 4 : RESIDENT - 1. For the purposes of this Agreement, the term resident of a Contracting State means any person who is a resident of a Contracting State in accordance with the taxation laws of that State. ARTICLE 5 : PERMANENT ESTABLISHMENT - 1. For the purposes of this Agreement, the term permanent establishment means a fixed place of business through which the business of the enterprise is wholly or partly carried on. ARTICLE 6 : INCOME FROM IMMOVABLE PROPERTY - 1. Income derived by a resident of a Contracting State from immovable property situated in the other Contracting State may be taxed in that other State. ARTICLE 7 : BUSINESS PROFITS - 1. The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the other State but only so much of them as it directly or indirectly attributable to that permanent establishment.

ARTICLE 8 : SHIPPING AND AIR TRANSPORT - 1. Profits derived by an enterprise of a Contracting State from the operation of ships or aircraft in international traffic shall be taxable only in that State.
ARTICLE 9 : ASSOCIATED ENTERPRISES ARTICLE 10 : DIVIDENDS

ARTICLE 11 : INTEREST -