Double Taxation Avoidance Agreement Between India And Iran

The purpose of a DBAA is to provide for the tax claims of the government of two countries in which these countries have similar interests and are legally entitled to collect taxes on a given income from a particular person or company. Countries with such an interest may cede the full right to one country or provide a platform on which those rights must be divided between the two. On February 17, 2018, India signed an agreement with Iran on the prevention of double taxation (`DBAA`) to avoid double taxation and prevent income tax evasion as part of its ongoing efforts to facilitate relations with countries with respect to the dominant tax system. The DTAA is essentially an agreement between two countries to avoid the risk of double taxation of a person or entity in his country of residence while operating in a foreign country. India signed this agreement with 85 other countries1. 1. www.incometaxindia.gov.in/Pages/international-taxation/dtaa.aspx The “Convention to Avoid Double Taxation and Prevent Tax Fraud by Taking Income Taxes into Account” aims to promote the flow of investment and services between India and Democracy. Details of the DBAA have yet to be published. Following discussions between Iranian President Hassan Rouhani and Prime Minister Narendra Modi, the two nations also agreed to examine the feasibility of a preferential agreement and to revive the Asian Compensation Union, used for oil and other trade relations until the United States imposes sanctions on the Persian Gulf nation, as indicated in the joint statement issued after the bilateral meeting of two-country heads of state and government in Delhi. In the context of the agreement, Memorandums of Understanding were signed to promote trade between the Iranian Chamber of Commerce, Industry, Mining and Agriculture (ICCIMA) and india`s major trade representatives – Federation of Indian Chambers of Commerce and Industry (FICCI), Associated Chambers of Commerce and Industry of India (ASSOCHAM) and PHD Chamber of Commerce and Industry (PHDCCI). The agreement is similar to the agreement that India has reached with other countries. The agreement will stimulate the influx of investment, technology and personnel from India to Iran and vice versa and avoid double taxation, the Finance Ministry said in a statement.

India and Iran signed an agreement in New Delhi to avoid double taxation (DTAA) and prevent income tax evasion. The agreement is similar to the agreement that India has reached with other countries. The agreement will stimulate the influx of investment, technology and personnel from India to Iran and vice versa, and avoid double taxation. The agreement provides for the exchange of information between the two parties in accordance with the latest international standards. It will improve tax transparency and help reduce tax evasion and evasion. “The two heads of state and government agreed on deepening trade and investment cooperation between the two countries. In this context, they recognized the need for an effective banking channel for commercial transactions. It was indicated that the authorization granted to the Iranian bank Pasargadbank to open a branch in India would be reviewed in advance,” he said in the joint statement. In addition to preventing tax evasion, the agreement could promote maritime and air transport.


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