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Vol 5 (AAC) No 10

Published 1st August 2012


To save a treaty

Pressure mounts again on the treaty that allows funds to transit untaxed through Mauritius and into India’s markets

Mauritius and India are gearing up for another confrontation over the 1983 Double Taxation Avoidance Agreement. The DTAA allows Indian investors to avoid paying tax by funnelling their investments through the island – also known as ‘round-tripping’. Mauritius imposes a capital gains tax of just 3% while India imposes a 15% tax on short-term capital gains. The next round of negotiations in Port Louis on 22-24 August will seek to impose stricter oversight but preserve Mauritius’s role as an international offshore financial centre.

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