The Indian government has announced the signing of a Tax Information Exchange Agreement (TIEA) with Bermuda, which contains beneficial terms for both signatories.
The pact was signed by Shri Palanimanickam, the Indian Minister of State for Revenue in the Ministry of Finance, and by Ewart Brown the Bermudian Premier. It is the first TIEA to be signed by India, although the territory has revised previous double tax agreements to include tax information exchange protocols.
The agreement has been negotiated in accordance with the Organization for Economic Cooperation and Development standard agreement, and provides the respective countries’ tax authorities with the ability to obtain, on request, information to facilitate in civil tax matters and the investigation of fiscal crime.
Speaking on the occasion, Palanimanickam said that the agreement is “important in the perspective of efforts made by Global Forum to build an effective system for exchange of information around the world”. The Minister expressed hope that bilateral relations between the two countries would be strengthened with the agreement.
Welcoming the agreement on behalf of the Bermudan government, Finance Minister, Paula Cox said that the agreement exempts Bermuda from punitive measures that apply to India’s listed countries, such as the application of controlled foreign company rules, expense deduction rules, special tax rules, and capital gains realized by non-resident entities, amongst others. This makes it easier for Bermuda to do business with India, Cox explained, adding:
“Presently, Bermuda ranks as one of the highest providers in the world of foreign direct inflows to India. In fact, Bermuda is 15th on the list of Foreign Direct Investments into India and with the TIEA, it could very well get into the top 10 in future.”
“Currently, there are 120 entities in Bermuda with Indian interests. This agreement will further enhance investment opportunities between our two countries and open new avenues for funds domiciled in Bermuda to directly invest in India. Moreover, with the increasing liberalization of the Indian insurance sector, and the recently passed civil nuclear liability bill passed by the Parliament of India, further opportunities will be available for insurers and reinsurers in Bermuda.”
The pact was signed by Shri Palanimanickam, the Indian Minister of State for Revenue in the Ministry of Finance, and by Ewart Brown the Bermudian Premier. It is the first TIEA to be signed by India, although the territory has revised previous double tax agreements to include tax information exchange protocols.
The agreement has been negotiated in accordance with the Organization for Economic Cooperation and Development standard agreement, and provides the respective countries’ tax authorities with the ability to obtain, on request, information to facilitate in civil tax matters and the investigation of fiscal crime.
Speaking on the occasion, Palanimanickam said that the agreement is “important in the perspective of efforts made by Global Forum to build an effective system for exchange of information around the world”. The Minister expressed hope that bilateral relations between the two countries would be strengthened with the agreement.
Welcoming the agreement on behalf of the Bermudan government, Finance Minister, Paula Cox said that the agreement exempts Bermuda from punitive measures that apply to India’s listed countries, such as the application of controlled foreign company rules, expense deduction rules, special tax rules, and capital gains realized by non-resident entities, amongst others. This makes it easier for Bermuda to do business with India, Cox explained, adding:
“Presently, Bermuda ranks as one of the highest providers in the world of foreign direct inflows to India. In fact, Bermuda is 15th on the list of Foreign Direct Investments into India and with the TIEA, it could very well get into the top 10 in future.”
“Currently, there are 120 entities in Bermuda with Indian interests. This agreement will further enhance investment opportunities between our two countries and open new avenues for funds domiciled in Bermuda to directly invest in India. Moreover, with the increasing liberalization of the Indian insurance sector, and the recently passed civil nuclear liability bill passed by the Parliament of India, further opportunities will be available for insurers and reinsurers in Bermuda.”
