ASIA: India and China Amended their Bilateral Double Taxation Avoidance Agreement.
India and China on Monday amended their bilateral Double Taxation Avoidance Agreement (DTAA) to prevent tax evasion through exchange of information, reports Business-standard.com
In a statement, the Finance Ministry said that the protocol updated the existing provisions for information exchange to the latest international standards.
It also incorporated changes required to implement treaty-related minimum standards under the Base Erosion and Profit Shifting (BEPS) action reports.
"Besides minimum standards, the protocol also brought in changes as per BEPS action reports as agreed upon by the two sides," the statement said.
BEPS are tax avoidance strategies that exploit gaps and mismatches in tax rules to artificially shift profits to low or no-tax locations.