India and Spain, on Friday, signed a protocol for amending the existing double taxation avoidance agreement (DTAA) between the two countries to enable effective exchange of information and check tax evasion.
The protocol document was signed here by Finance Minister P. Chidambaram and Spain’s Foreign Affairs and Cooperation Minister Jose Manuel Garcia-Margallo Marfil during the state visit of King Juan Carlos I.
The existing DTAA with Spain was signed here on February 8, 1993. However, with the proliferation of illicit funds becoming a global concern, India began a process of revising its tax avoidance pacts with over 80 countries.
Keywords: double taxation avoidance agreement