Foreign investors are setting sights on new markets with
stable tax regimes through which to route their investments
into India, according to speakers at this year’s
IFLR India M&A Forum in Mumbai.
India and Mauritius signed a new deal in May to amend the
1983 India-Mauritius Treaty, with both sides agreeing on the
removal of the existing tax exemption for gains from the
transfer of Indian securities by a Mauritius resident.
According to panellists this has already resulted in foreign
investors seeking to restructure their India-bound investments
through Singapore, which has a more stable tax regime.
"The changes to the Indo-Mauritius tax treaty have been a
game changer in the way in which foreign investment in Indian
joint ventures is being structured," said Delano Furtado,
partner at Trilegal in Mumbai. He added that the tax
structuring aspects of such investments will change
considerably going forward. ...