India and Maldives signed two new tax agreements on April 11, 2015, for the exchange of information in tax matters and for the avoidance of double taxation of income from international air transport.
The tax information exchange agreement is based on international standards on transparency and exchange of information. The Indian Government said it covers taxes of every kind and description imposed by both territories, and enables the exchange of information, including banking information.
The second Agreement provides for relief from double taxation for the airlines of India and Maldives by way of an exemption for income from the operation of aircraft in international traffic. Under the deal, profits from the operation of aircraft in international traffic will be taxed in one country alone; the taxing right will be conferred upon the country to which the enterprise belongs. The agreement includes Mutual Agreement Procedure provisions, to help resolve any disputes surrounding the agreement’s application.
IMC Group