A delegation from Cyprus visited India towards the end of
November 2013 in order to resolve the issues that had led to the
Indian tax authorities' decision to designate Cyprus as a
"notified jurisdictional area" (see
our news item dated 12 November 2013). The talks between the
representatives of the two countries focused on effective exchange
of information and the renegotiation of the Cyprus-India double tax
treaty.
It was agreed that the "notified jurisdictional area"
status can be lifted immediately once effective mechanisms are put
in place to allow the exchange of information by including the
provisions of article 26 of the OECD Model Tax Convention in the
Cyprus-India double tax treaty and by improving channels of
communication in order to facilitate swift and effective responses
to requests for information. Rescission of "notified
jurisdictional area" status will have retroactive effect from
1 November 2013, the date when the notification was issued.
Please click here for a link to the Cyprus government's
press release on the issue.
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