Fijians can look forward to a significant increase in the amount of Indian investment in the country after the Attorney-General and Minister for Industry and Trade, Aiyaz Sayed-Khaiyum, yesterday signed a Double Taxation Avoidance Agreement (DTAA) with the Government of the Republic of India.
Speaking from New Delhi, India, the Attorney-General explained that the DTAA will prevent Indian investors from being taxed in India on business profits earned in Fiji, making it much more appealing for them to invest in the country, growing the economy and creating jobs for ordinary Fijians.
He said the same is true for Fijian investors in India.
"This agreement has the potential to seriously boost the Fijian economy by encouraging a stronger flow of investment, technology and services between Fiji and India, one of the world's largest and fastest growing economies and the second most populated country in the world," he said.
The Attorney-General said that with this agreement in force, the generous investment incentives offered by the Bainimarama Government would be much more attractive to Indian investors, ultimately leading to more jobs for ordinary Fijians.
"With the signing DTAA, now, Indian investors have clear and transparent rules regarding taxes, bringing about surety and certainty," he said.
The Attorney-General said that this agreement will also help prevent tax evasion and false investor declarations.
“The agreement signed with India is fair, balanced and progressive, unlike agreements we have with some of the other countries," said the Attorney General.
“The Indians have been most accommodating. The DTAA spares Fijian students that are studying in India from paying taxes, if they choose to work whilst studying. Under the DTAA, the Indian Revenue and Tax Authority will assist FRCA to recover any taxes owed to Fiji, by individuals or companies residing in India," said the Attorney-General.
The CEO FRCA, Mr. Jitoko Tikolevu, Permanent Secretary and for Industry and Trade, Mr. Shaheen Ali, Fijian High Commissioner to India, Mr. Yogesh Karan, Chair Investment Fiji, Mr. Truman Bradley and Deputy Secretary Industry and Trade, Mr. Maciu Lumelume were present with the Minister for Industry and Trade, during the signing.
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