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International Air Transport India-Maldives Agreement Signed
On 24 February Union Cabinet chaired by the Prime Minister Narendra Modi 2016 signed an agreement between India and Maldives to avoid double taxation of income from international air transport.
• Tax certainty for airline enterprises of India and Maldives will be confirmed by this.
• It provides relief from double taxation for airline enterprises of both the countries
• Income derived by the enterprise of India from the operation of aircraft in international traffic will be exemption from Maldivian tax.
• Profits from the operation of aircraft in international traffic will be taxed by the country for which the product or enterprise belongs to.
• Mutual Agreement Procedure is provided to resolve difficulties or doubts.
Under the agreement, profits from the operation of aircraft in international traffic will be taxed in one country alone. Accordingly, the taxing right is conferred upon the country to which the enterprise belongs.
