Estonia signing agreement with India for the prevention of double taxation

On September 19, 2011 the Government of the Republic of Estonia and Government of the Republic of India signed an agreement for the prevention of double taxation and fiscal evasion with respect to taxes on income. For enforcement of the agreement, it must be ratified in the Parliament of Estonia.

Agreement basis on OECD Model Tax Convention on Income and on Capital, but it has been changed in some measure followed from need of communication between India and Estonia. Purpose of the treaty of avoiding double taxation is to predispose international investments and interstate trade, also free movement of people and technology. To gain the purpose, the treaty regulates the division of tax assessments right between contracting parties, enacts preventing of discriminative imposition of taxes and obligation of blocking tax avoidance. Treaty restricts the right of tax assessment of the contracting state, by implication, contracting state gives over the part of the tax revenues to the other contracting state and conversely.

Agreement establishes better conditions for undertakers and helps to make economic and business cooperation between India and Estonia more effective.

Estonia has effective double taxation avoidance treaties with Finland, Sweden, Denmark, Norway, Latvia, Lithuania, Poland, United Kingdom of Great Britain and Northern Ireland, Iceland, Czech, Canada, Ukraine, Germany, Belarus, Netherlands, Italy, France, Ireland, United Kingdom of America, Moldavia,  China, Kazakhstan, Belgium, Austrian, Armenian, Malta, Croatia, Switzerland, Hungarian, Portugal, Turkey, Spain, Romania, Slovakia, Slovenia, Luxembourg, Georgia, Singapore, Greece, Azerbaidzhan, Bulgaria, Macedonia, Israel, Mani island, Serbia, South-Korea, and Albany.

Valters Gencs

Tax Attorney & Founding Partner

Gencs Valters Law Firm, Riga

T: +371 67 24 00 90

Email: valters.gencs@gencs.eu