• Potential Changes for Structuring Investments in India
  • December 19, 2011 | Authors: Rahul Patel; John C. Taylor
  • Law Firms: King & Spalding LLP - Atlanta Office ; King & Spalding LLP - London Office
  • India and Mauritius are likely to begin renegotiating the current India-Mauritius Double Taxation Avoidance Agreement (the “DTAA”) in the near future. The DTAA provides for the assessment of a capital gains tax on an investor only in the country of such investor’s residence. Mauritius-based companies that invest in India pay no capital gains because such income is tax exempt under the domestic laws of Mauritius. For this reason, many foreign investments in India are channeled through a Mauritius subsidiary.