25 Apr 07 India signs double taxation avoidance agreement / treaty with Luxembourg
India has signed a double taxation avoidance agreement / treaty with Luxembourg, which is a very small European country. As per this agreement Indian companies operating in Luxembourg need not pay taxes in India. They only need to pay tax in Luxembourg. The tax rates in Luxembourg are very low at between 5% and 12%, whereas the tax rates in India can be as high as 36%, the lowest being 16%. Many Indian companies are likely to set up their bases in Luxembourg, following the double taxation avoidance agreement / treaty, so that they have access to the European markets.
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