India and Maldives are set to scrap the double taxation for their airlines operating between the two countries.
Indian media reports said the Indian union cabinet on Wednesday gave the green light to sign the agreement with the Maldives that will provide relief from double taxation.
"The agreement provides for relief from double taxation for airline enterprises of India and Maldives by way of exemption of income derived by the enterprise of India from the operation of aircraft in international traffic, from Maldivian tax and vice-versa," an official release said.
Under the pact, profits from the operation of aircraft in international traffic will be taxed in one country alone.
Accordingly, the taxing right is conferred upon the country to which the enterprise belongs. The agreement will provide tax certainty for airline enterprises of India and Maldives, it added.
To Read the News in Full 25/02/16 Mohamed Visham/Haveeru Online
Indian media reports said the Indian union cabinet on Wednesday gave the green light to sign the agreement with the Maldives that will provide relief from double taxation.
"The agreement provides for relief from double taxation for airline enterprises of India and Maldives by way of exemption of income derived by the enterprise of India from the operation of aircraft in international traffic, from Maldivian tax and vice-versa," an official release said.
Under the pact, profits from the operation of aircraft in international traffic will be taxed in one country alone.
Accordingly, the taxing right is conferred upon the country to which the enterprise belongs. The agreement will provide tax certainty for airline enterprises of India and Maldives, it added.
To Read the News in Full 25/02/16 Mohamed Visham/Haveeru Online
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