February 03, 2014

Increased Indian investment anticipated

February 1, 2014 | Filed under: Business | Posted by: newsroom
Double Taxation Avoidance Agreement signed in New Delhi

The Attorney-General and Minister for Industry and Trade, Aiyaz Sayed-Khaiyum (right) with the Indian Minister for Finance, Palaniappan Chidambaram, during the signing of the Double Taxation Avoidance Agreement in New Delhi, India.A significant increase in the amount of investment from India is anticipated in the country.
This follows the signing of the Double Taxation Avoidance Agreement (DTAA) between the Fijian and Indian Government on Thursday in India.

The agreement was signed on behalf of Fiji by the Attorney-General and Minister for Industry and Trade, Aiyaz Sayed-Khaiyum.

Speaking from New Delhi, India, Mr Sayed-Khaiyum explained the agreement would prevent Indian investors from being taxed in India on business profits earned in Fiji.

He said this would make it much more appealing for them to invest in the country, growing the economy and creating jobs for ordinary Fijians.

Mr Sayed-Khaiyum said the same would be true for Fijian investors in India.

Indian Finance Minister Palaniappan Chidambaram signed the agreement on behalf of India.

Potential of the agreement
Mr Sayed-Khaiyum said this agreement had the potential to seriously boost the Fijian economy.

“This would be by way of encouraging a stronger flow of investment, technology and services between Fiji and India, one of the world’s largest and fastest growing economies and the second most populated country in the world,” he said.

Mr Sayed-Khaiyum said with this agreement in force, the generous investment incentives offered by the Bainimarama Government would be much more attractive to Indian investors.

This, he said, would ultimately lead to more jobs for ordinary Fijians.

“With the signing DTAA, now, Indian investors have clear and transparent rules regarding taxes, bringing about surety and certainty,” the Minister said.

Prevention of tax evasion
Mr Sayed-Khaiyum believes this agreement would also help prevent tax evasion and false investor declarations.

“The agreement signed with India is fair, balanced and progressive, unlike agreements we have with some of the other countries,” he said.

“The Indians have been most accommodating. The DTAA spares Fijian students that are studying in India from paying taxes, if they choose to work whilst studying.

“Under the DTAA, the Indian Revenue and Tax Authority will assist FRCA to recover any taxes owed to Fiji, by individuals or companies residing in India.”

The delegation
The delegation to India is made up of:
- Permanent Secretary for Industry and Trade – Shaheen ali
- Fiji Revenue and Customs Authority chief executive – Jitoko Tikolevu
- Fijian High Commissioner to India – Yogesh Karan
- Investment Fiji chair – Truman Bradley
- Deputy Secretary for Industry and Trade – Maciu Lumelume

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