New Delhi: India and Malta have renegotiated the Double Taxation Avoidance Agreement (DTAA) to align with global norms and changes in domestic laws.
"India and Malta have renegotiated the agreement to bring in line with international standards, change in domestic laws and changed economic scenario," an official statement said Monday.
DTAA and a protocol to avoid double taxation and prevention of fiscal evasion due to taxes on income are already in force between the two countries since 1995.
"On April 8, 2013, India and Malta had signed the new DTAA at Valetta, Malta. The Double Taxation Avoidance Agreement (DTAA) was signed by Preneet Kaur, Minister of State for External Affairs of India and George Vella, Foreign Minister of Malta," the statement said.
Once the DTAA enters into force, it will stimulate the flow of capital, technology and personnel between both the countries and will further strengthen the economic relationship, it added.
It also provides tax stability and reduces any obstacles in providing mutual cooperation between India and Malta, the statement said.