Cyprus and India have singed a Memorandum of Understanding for cooperation in the field of solar energy. The MoU was singed between Cyprus-based NORSACO Limited, Upturn Trading Limited and Case Neuberg Solutions (a CASE Group of company).
The prospect of a quantum leap in trade and economic relations between the two countries, however, may be hamstrung by the India’s double taxation regime.
Cyprus raised the taxation issue at the Business Forum, the first official function attended by President Pratibha Patil on Friday during her three-day visit to the country.
“We hope your visit will help in working out a treaty for avoiding dual tax,” said Manthos Mavraommatis, president of the Cyprus Chamber of Commerce and Industry.
Cyprus is resisting any change in the existing policy of double taxation, while India is pushing for amendments in order to prevent its misuse. Double taxation agreements between countries presuppose the exchange of tax declarations by non-residents in either country.
The interaction of the business leaders comes ahead of Patil’s meeting with Cypriot President Demetris Christofias.
In her speech at the Business Forum, Patil agreed that Cyprus’ location could serve India’s interest and emphasised that India’s stable economy and democratic and transparent system makes it an excellent destination for investment.