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Double Taxation Avoidance Agreement India and China

Double Taxation Avoidance Agreement (DTAA) is a treaty signed between two countries in order to avoid double taxation of individuals and companies operating in both countries. India and China, being two of the largest economies in the world, have signed a DTAA in order to better facilitate trade and investment between the two countries.

The DTAA between India and China was signed in 1994 and came into effect in 1996. The agreement outlines the tax laws and regulations that apply to individuals and companies operating in both countries. This agreement not only helps to eliminate double taxation, but also helps to promote economic growth and stability by providing a framework for fair and non-discriminatory treatment of investors, businesses and individuals.

The agreement outlines the taxes covered under the DTAA, including income tax, corporate tax, and capital gains tax. The agreement also provides for the taxation of dividends, interest, and royalties. India and China have agreed to limit the amount of tax that can be charged on these types of income in order to avoid double taxation.

The DTAA also outlines the procedures for resolving disputes between the two countries. This includes the establishment of a mutual agreement procedure that allows taxpayers to seek resolution of disputes related to the interpretation or application of the DTAA. This procedure is designed to provide a fair and impartial resolution of disputes, and to avoid any unnecessary litigation.

The DTAA signed between India and China has helped to promote trade and investment between the two countries. By providing a framework for fair and non-discriminatory treatment of investors, businesses and individuals, the DTAA has helped to create a more business-friendly environment. It has also helped to facilitate cross-border investment and trade, which is essential for economic growth and stability.

In conclusion, the Double Taxation Avoidance Agreement signed between India and China is an important agreement that has helped to promote economic growth and stability between the two countries. The agreement has provided a framework for fair and non-discriminatory treatment of investors, businesses and individuals, and has helped to eliminate double taxation. This has helped to create a more business-friendly environment and has facilitated cross-border investment and trade. As a result, the DTAA has played a significant role in strengthening the economic ties between India and China.