The UAE has signed 67 bilateral double taxation avoidance agreements (DTAAs) with countries but is yet to enter into any tax information exchange treaties with other states, said industry specialists at a day-long workshop in Dubai on Saturday.
Organised by the UAE chapter of the Institute of Chartered Accountants of India, the event discussed international taxation, double taxation treaties, NRI taxation and Foreign Exchange Management Act (Fema) implications.
DTAAs are signed to mitigate taxation, avoid double taxation conflicts and define boundaries of taxing rights.
Meanwhile, 94 countries have agreed to trade information on financial details under the exchange of tax information programme initiated by the OECD. All financial information will be collected in 2016, shared in 2017, government officers will scrutinise data in 2018 and first action is likely to be initiated in India in 2019.
“Book-keeping has become a must as a safe course of action. Keep proof of all your property purchases. Keep a minimum trail if you are looking to come back to India and disclose assets,” Ostwal advised NRIs at the event.
The Fema, a successor to the draconian Foreign Exchange Regulation Act of 1973, is often referred to the ‘Gateway of India’ as it is the governing law for all NRIs.
“Citizenship or the number of days you reside in India will not influence Fema,” said Rajesh H. Dhruva, an NRI tax consultant based in Rajkot, India.
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