India, Myanmar sign pact to avoid double taxation

April 3rd, 2008 - 8:20 pm ICT by admin  

New Delhi, April 3 (IANS) India and Myanmar Thursday announced a double taxation avoidance agreement that will ensure both prevention of fiscal evasion by firms operating in the two countries and that incomes are taxed just once. Dividends at the five percent maximum and interest and royalties at 10 percent will be taxed both in the country of residence and in the country of source, an official statement said.

But capital gains from the sale of shares would be only taxable in the country of source, the statement added.

P.K. Misra, chairman of the India’s Central Board of Direct Taxes (CBDT), and Kyi Thein, ambassador and plenipotentiary of Myanmar to India, signed the pact here.

“The double taxation avoidance agreement provides that business profits will be taxable in the source state if the activities of an enterprise constitute a permanent establishment in the source state,” said the statement.

“The agreement will provide tax stability to the residents of India and Myanmar and facilitate mutual economic cooperation as well as stimulate the flow of investment, technology and services between India and Myanmar.”

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