Bilateral Treaty on the Avoidance of Double Taxation
Mr. Árni Mathiesen, in his response, said that the Treaty would facilitate flow of more investment in both the countries and further enhance mutual economic ties.
Besides avoidance of double taxation and prevention of fiscal evasion in respect of taxes on income, the agreement aims at promoting economic co-operation between the two countries. The Treaty which will come into force after it is notified covers income-tax as well as surcharge in the case of India. In the case of Iceland, income-tax paid to the state and to the municipalities is taken into account. Members of the Icelandic trade delegation who are accompanying the Icelandic Minister of Finance in his visit to India were present at the signing ceremony.