DTAA Between India & Albania
Agreement For Avoidance Of Double Taxation And Prevention Of Fiscal Evasion With Albania
The DTAA provides that business profits will be taxable in the source state if the activities of an enterprise constitute a Permanent Establishment (PE) in the source state. The Agreement provides for fixed place PE, building site, construction & installation PE, service PE and agency PE.The Agreement incorporates para 2 in Article 9 concerning Associated Enterprises. This would enhance recourse to Mutual Agreement Procedure to relieve double taxation in cases involving Transfer Pricing adjustments.
Dividends, Interest and Royalties & Fees for Technical Services income will be taxed both in the country of residence and in the country of source. The low level of withholding rates of taxation for dividend (10%), interest (10%) and royalties & fees for technical services (10%) will promote greater investments, flow of technology and technical services between the two countries. The Agreement further incorporates provisions for effective exchange of information between tax authorities of the two counties in line with latest international standard, including exchange of banking information and supplying of information without recourse to domestic interest.
The Agreement also contains an Article on Assistance in Collection of Taxes. This article also includes provision for taking measure of conservancy. The Agreement incorporates anti-abuse (limitation of benefits) provisions to ensure that the benefits of the Agreement are availed of by the genuine residents of the two countries. The Agreement will provide tax stability to the residents of
and Albania and
will facilitate mutual economic cooperation between the two countries. It will
also stimulate the flow of investment, technology and services between India