The government after revising the double taxation avoidance agreement with Mauritius, has approved the signing of a Protocol amending the Agreement between India and Belgium for avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income.
The amendment in the protocol is expected to broaden the scope of the existing framework of exchange of tax related information between the two countries, which will help curb tax evasion and tax avoidance. Furthermore, the protocol will also revise the existing treaty provisions on mutual assistance in collection of taxes.
In the year 1997, the tax treaty was signed between Indian and Belgium for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income. The Agreement is applied to all taxes imposed on total income or on elements of income including taxes on gains from the sale, exchange or transfer of movable or immovable property and taxes on the total amounts of wages or salaries paid by enterprises. The government is in the process of amending pacts with Singapore and other nations too check tax treaty abuses.