NEW DELHI: India will soon remove Cyprus from its tax blacklist as a non-cooperative jurisdiction for income tax purposes, local daily Business Line said on Saturday.
The proposal followed the finalization of a double taxation avoidance agreement between the two countries, said the newspaper.
This would facilitate Indian taxpayers transacting with Cyprus, which faces higher withholding taxes and their consequences of transfer-pricing provision.
The Mediterranean island nation is the only country to have been blasted by India as a non-cooperative jurisdiction because of lack of effective exchange of information.
India and Cyprus signed a tax treaty in 1994 obliging both sides to exchange information. The Indian Finance Ministry put Cyrus on the blacklist over alleged failed discussions to secure the desired level of cooperation, said the report.