The Central Board of Direct Taxes (CBDT) in India has announced that the amended Double Taxation Avoidance Agreement (DTAA) between the country and Cyprus will come into complete effect in April 2017, following its signing in November 2016.

The treaty outlines which party will tax capital gains obtained via the alienation of shares, and includes a grandfathering clause concerning investments made before April 01, 2017, whereby capital gains will be payable in the resident country.

Both countries have completed the ratification procedure concerning the amended agreement, and India officially removed Cyprus off the non-cooperative foreign tax jurisdiction after the tax treaty was revised. The island had been placed on the list in 2013, with India claiming that Cyprus did not exchange tax information.