The UAE and New Delhi have reached an agreement that will lead to tax exemptions for the UAE's sovereign investments in India.
The tax exemptions are applicable to the infrastructure for all sovereign investment institutions in the UAE, both federally and locally, according to a statement from the UAE's Ministry of Finance. This is part of a set of amendments and investment incentives recently announced by the Indian government to attract and encourage foreign sovereign investment in sectors of importance to India.
These exemptions will come into effect on April 1, 2021, and will be limited to investments made until March 31, 2024, provided the investment is maintained for at least three years. In the future, other sectors may be identified for tax exemptions by the Indian government.
These exemptions are part of the UAE’s unrelenting efforts to further improve economic relations with countries around the world"
"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 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."
In the future, other sectors may be identified for tax exemptions by the Indian government.
Bilateral trade between the countries reached $60bn during 2018-2019, according to Wam news agency.