On 25th January, 2016, the Union Cabinet has given its approval for signing of an Agreement between India and Maldives for the avoidance of double taxation of income from international air transport. The Agreement provides relief from double taxation for airline enterprises of India and Maldives by 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. The profits from the operation of aircraft in international traffic will be taxed in one country alone and the taxing right is conferred upon the country to which the enterprise belongs. It also provide tax certainty for airline enterprises of India and Maldives. The Mutual Agreement Procedure is adopted for resolving any difficulties or doubts arising as to the interpretation or application of the Agreement.
-Press Information Bureau
