Avoidance of Double taxation income by agreement between India and Maldives

PM- Narendra Modi and his cabinet approved the agreement which will avoid double taxation for International airline enterprises in Maldives and India.

Main features

• Tax can be paid on the profits earned out of operation of aircrafts only in the countrywhere the enterprise belongs to
• It provides for relief from double taxation for airline enterprises of both the countries way of exemption of income derived by the enterprise of India from the operation of aircraft in international traffic, from Maldivian tax and vice-versa.
• It provides tax certainty
• Mutual agreement procedure to solve issues