According to an official announcement of the Ministry of Finance of the Cyprus, on 29 June 2016 the Republic of Cyprus and the Government of the Republic of India concluded the negotiation on the Double Taxation Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Income between Cyprus and India.
The negotiations were completed in New Delhi, where the agreement was completed and reached all pending issues.
It has also been agreed that, following the entering into force of the amending Agreement, the Indian Authorities will proceed with retrospectively rescinding the classification of Cyprus in the 'Notifies Jurisdictions Ares' as of 1st November 2013.
The agreement between the two Contracting States will contribute to further develop the trade and economic relations between Cyprus and the Government of India.
In accordance to the provisions of the agreement, source based taxation for gains from the alienation of shares will be applicable and investments undertaken prior to 1 April 2017 are grandfathered with the view that taxation of disposal of such shares at any future date remains with the contracting state of residence of the seller.
Further details on the provisions of the treaty will be reported once they are made available.