India is in dialogue with Cyprus for sharing tax information. The island nation was blacklisted by India in 2013 for not sharing tax information under the Taxation treaty. The finance Ministry classified Cyprus as a notified jurisdictional area on grounds that the country was not providing information requested by tax authorities under the taxation treaty. Following the notification, all payments made to Cyprus attracted a 30 per cent withholding tax and Indian entities receiving money from there were required to disclose the source of funds.
India and Cyprus had entered into an agreement for avoidance of double taxation of income and prevention of fiscal evasion in December 1994. Under the agreement, both countries have a legal obligation to exchange such information.
Tidbits
- Cyprus is the third largest and third most populous island in the Mediterranean.
- On January 2008, the Republic of Cyprus joined the Eurozone.
- Nicos Anastasiades is the current President of Cyprus.
- Cyprus has two official languages, Greek and Turkish.
- Currency – Euro
- Capital – Nicosia
