By Bernd Debusmann Jr
According to a statement from the UAE's Ministry of Finance, the tax exemptions are applicable to the infrastructure for all sovereign investment institutions in the UAE, both federally and locally
The UAE and India have reached an agreement that will lead to tax exemptions for the UAE’s sovereign investments in India, it has been announced.
According to a statement from the UAE’s Ministry of Finance, the tax exemptions are applicable to the infrastructure for all sovereign investment institutions in the UAE, both federally and locally.
The announcement forms part of a wider set of amendments and investment incentives recently announced by the Indian government to attract and encourage foreign sovereign investment in key sectors of the Indian economy.
“These exemptions are part of the UAE’s unrelenting efforts to further improve economic relations with countries around the world,” said Younis Haji Al Khoori, undersecretary of the Ministry of Finance.
“The move also reflects the success of the recent negotiations between the joint venture teams from the UAE and India.
“These meetings strengthen bilateral ties and help create investment incentives that support trade exchange and economic activities between the two countries,” he added.
The statement added that other sectors may be identified for tax exemptions by the Indian government.
The exemptions will come into effect on April 1, 2021, and will be limited to investments made within the period not exceeding March 31, 2014, provided that the investment is maintained for at least three years.