NEW DELHI: With India re-working taxation treaty with Singapore, an influential grouping of overseas investors has said capital gains tax exemption should be retained in the pact for FPIs in listed securities as that would “greatly ease” concerns of foreign investors.
Seeking elimination of capital gains tax on portfolio investments in listed securities, Hong Kong-based Asia Securities Industry & Financial Markets Association (ASIFMA) also said that India’s tax system is “complete with.
“Retention of capital gains tax protection in Singapore treaty, at least for foreign portfolio investments in listed securities, will greatly ease foreign investors’ concerns and make doing business in India easier,” ASIFMA’s Patrick Pang told PTI from Hong Kong.
Pang is the Managing Director – Head of Fixed Income and Compliance – at ASIFMA. It has more than 90 member firms including banks, asset managers, law firms and market infrastructure service providers.
India is re-negotiating its tax treaty with Singapore following the revision of pact with Mauritius to ensure that similar provisions related to capital gains tax are in place.
India is re-negotiating its tax treaty with Singapore following the revision of pact with Mauritius to ensure that similar provisions related to capital gains tax are in place.
Stating that Singapore has a robust regulatory regime and tight anti-money laundering requirements, Pang said tax treaty with that country should be considered on its own merits.
