To avoid double taxation India and Fizi signed pact

India and Fiji have signed a double taxation avoidance agreement (DTAA) that provides for, among other things, exchange of banking information for tax administration purpose.

This is the first time both countries are entering into a DTAA.

The pact also includes certain specific provisions to prevent treaty abuse.

In was signed by P. Chidambaram and Aiyaz Sayed-Khaiyum. 

Highlights of the pact :

•  As per the DTAA the business profit will be taxable in the source state if the activities of an enterprise constitute a permanent establishment in the source country
•  Profits derived by an enterprise from the operation of aircraft in international traffic shall be taxable in the country of place of effective management of the enterprise
•  Dividends, interest, royalty income and fees for technical or professional services will be taxed both in the country of residence and in the country of source