Editorial & Advertiser Disclosure Global Banking And Finance Review is an independent publisher which offers News, information, Analysis, Opinion, Press Releases, Reviews, Research reports covering various economies, industries, products, services and companies. The content available on globalbankingandfinance.com is sourced by a mixture of different methods which is not limited to content produced and supplied by various staff writers, journalists, freelancers, individuals, organizations, companies, PR agencies Sponsored Posts etc. The information available on this website is purely for educational and informational purposes only. We cannot guarantee the accuracy or applicability of any of the information provided at globalbankingandfinance.com with respect to your individual or personal circumstances. Please seek professional advice from a qualified professional before making any financial decisions. Globalbankingandfinance.com also links to various third party websites and we cannot guarantee the accuracy or applicability of the information provided by third party websites. Links from various articles on our site to third party websites are a mixture of non-sponsored links and sponsored links. Only a very small fraction of the links which point to external websites are affiliate links. Some of the links which you may click on our website may link to various products and services from our partners who may compensate us if you buy a service or product or fill a form or install an app. This will not incur additional cost to you. A very few articles on our website are sponsored posts or paid advertorials. These are marked as sponsored posts at the bottom of each post. For avoidance of any doubts and to make it easier for you to differentiate sponsored or non-sponsored articles or links, you may consider all articles on our site or all links to external websites as sponsored . Please note that some of the services or products which we talk about carry a high level of risk and may not be suitable for everyone. These may be complex services or products and we request the readers to consider this purely from an educational standpoint. The information provided on this website is general in nature. Global Banking & Finance Review expressly disclaims any liability without any limitation which may arise directly or indirectly from the use of such information.


Cyprus has agreed to be more cooperative in the process of exchange of information with India, a month after the island was declared a notified jurisdiction by India for failing to effectively provide information to the Indian tax authorities.

Charles Savva
Charles Savva

The Finance Minister of Cyprus flew to New Delhi and following negotiations with the Indian government it was decided that Cyprus will eventually be removed from being a notified jurisdiction provided that there is a new double tax treaty in place, and that the Cypriot tax authorities become more cooperative in providing information to the Indian tax authorities.

Discussions between the two countries took place November 26-28 addressing India’s concerns about Cyprus’ lack of sharing information. It was agreed that “provisions of the new Article 26 of the OECD model tax convention relating to exchange of information” will be adopted in the new DTT. Article 26 grants a framework under which a country can seek information from another one and the rules governing that information.

Further, agreements were made that communication between both sides will be improved with efforts made towards swift processing of requests.

Regarding the re-negotiation of the existing DTT between Cyprus and India, the Cypriot ministry said a new DTT is expected to be finalised soon.

The Cyprus statement also says that after considerable efforts it was agreed during the talks that “once the notification of Cyprus being notified as a notified jurisdictional area under Section 94A of the Indian Income Tax Act, 1961 is rescinded, it would be done with retrospective effect from 1 November 2013, date when the notification of India was issued.”

S-AThe move India undertook declaring Cyprus as a notified jurisdiction increased scrutiny on any business transaction with entities based in Cyprus by India’s income tax department.

The notification was an unpleasant surprise for Cyprus financial services sector as several companies based in Europe and the US route their investments through the island to benefit from its favourable tax regime.

The fact that the Indian government has agreed to lift the notification from the date it was notified is a positive development albeit one that came with a hefty price. The existing double tax treaty between Cyprus and India exists since 1994 and is considered to be among the most beneficial tax treaties which India has. Meanwhile, it is worth noting India, shall be re-negotiating its double tax treaty with Mauritius. In particular, it has been announced that the new treaty between India- Mauritius will contain a Limitation of Benefit clause aimed at preventing treaty-shopping or other inappropriate use of treaty benefits.