Jan. 25 – India and Finland have signed a revised version of the Double Taxation Avoidance Agreement (DTAA).

The new agreement will cut withholding tax rates on dividends to 10 percent from 15 percent in addition to setting a 10 percent rate for royalties and fees for technical services. It will expand the scope of the article on Exchange of Information to make it easier for both to provide knowledge following current international standards.

Moreover, the DTAA added a new article concerning assistance in tax collection under domestic laws and regulation. The Independent Personal Service time test was changed from 90 days or more to 183 days or more during the 12 months at the beginning or ending of a fiscal year.

The DTAA will be implemented as soon compliance processes in both countries are finalized.