India signs DTAA with Macedonia to prevent income tax evasion

NEW DELHI: India today signed a Double Taxation Avoidance Agreement (DTAA) with Macedonia to prevent income tax evasion by entities in both the countries, a move that is also expected to increase economic cooperation.

"The agreement provides relief from double taxation to residents of India earning income in Macedonia and residents of Macedonia earning income in India," an official statement said.

The agreement provides that taxation of dividend, interest and royalty in the source country will not exceed 10 per cent, it added.

It has a 'limitation' of benefit article which provides that the benefit of this agreement will not be available to entity which has formed mainly to obtain benefits under this agreement, the statement said.

The pact was signed here by External Affairs Minister Salman Khurshid and Nikola Poposki Minister of Foreign Affairs of Macedonia.