{"id":40292,"date":"2019-01-12T16:02:18","date_gmt":"2019-01-12T10:32:18","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=40292"},"modified":"2019-01-12T16:02:18","modified_gmt":"2019-01-12T10:32:18","slug":"fdi-via-mauritius-dives-in-first-half-singapore-gains","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/fdi-via-mauritius-dives-in-first-half-singapore-gains\/","title":{"rendered":"FDI via Mauritius dives in first half, Singapore gains"},"content":{"rendered":"<p><a href=\"https:\/\/indianexpress.com\/article\/business\/economy\/fdi-via-mauritius-dives-in-first-half-singapore-gains-5534428\/\">FDI via Mauritius dives in first half, Singapore gains<\/a><\/p>\n<p><strong>News:<\/strong><\/p>\n<p>Singapore becomes preferred country for routing FDI in India with a 77.77 per cent jump in investments.<\/p>\n<p><strong>Important Facts:<\/strong><\/p>\n<ul>\n<li>In 2017-18, Mauritius was the top source of FDI into India with $13.41 billion investments followed by Singapore.<\/li>\n<li>According to RBI report, Mauritius, has witnessed a 69.3 per cent decline in foreign direct investment (FDI) in India in the first six months ended September 2018.<\/li>\n<li>Singapore which overtook Mauritius has turned out to be the preferred country for routing FDI with a 77.77 per cent jump in investments.<\/li>\n<\/ul>\n<p><strong>Why the shift:<\/strong><\/p>\n<ul>\n<li><strong>Amended DTAA (double tax avoidance agreement).<\/strong>\n<ul>\n<li>Mauritius emerged as the preferred route to channel foreign money into India largely owing to the double taxation avoidance treaty between the two countries.<\/li>\n<li>Under this, capital gains are taxed only in the \u2018country of residence\u2019, and since Mauritius does not tax gains on investment income, the moneybags got away lightly.<\/li>\n<li>However recently, FDI equity flows routed through Mauritius declined sharply due to amended DTAA (double tax avoidance agreement).<\/li>\n<li>The DTAA provided for a capital gains tax exemption to resident entities of these countries on transfer of Indian securities.<\/li>\n<li>These agreements were amended in 2016 with the purpose of source-based taxation of capital gains on shares, preventing round tripping of funds, curbing revenue loss and preventing double non-taxation.<\/li>\n<li>After the DTAA amendment, India gets taxation rights on capital gains arising from alienation of shares acquired on or after April 1, 2017, in a company resident in India.<\/li>\n<\/ul>\n<\/li>\n<li><strong>General Anti-Avoidance Rule (GAAR) in April 2017<\/strong>.\n<ul>\n<li>Aimed to plug tax avoidance. Under these rules, Indian I-T authorities can take a closer look at \u2018brass-plate companies\u2019 that have been set up in offshore centers solely to evade tax.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong>Global FDI trend:<\/strong><\/p>\n<ul>\n<li>As per United Nations Conference on Trade and Development (UNCTAD) estimates, global FDI flows fell by 41 per cent in H12018.<\/li>\n<li>This fall is attributed, to large repatriations of retained earnings by US-based parent companies from their affiliates abroad.<\/li>\n<li>This is evident in the aftermath of the enactment of the US tax reform package at the end of 2017 which gave multinationals a one-time special rate of 15.5 per cent instead of 35 per cent rate on the repatriation of profits earned abroad.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>FDI via Mauritius dives in first half, Singapore gains News: Singapore becomes preferred country for routing FDI in India with a 77.77 per cent jump in investments. Important Facts: In 2017-18, Mauritius was the top source of FDI into India with $13.41 billion investments followed by Singapore. According to RBI report, Mauritius, has witnessed a&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/fdi-via-mauritius-dives-in-first-half-singapore-gains\/\">Continue reading <span class=\"screen-reader-text\">FDI via Mauritius dives in first half, Singapore gains<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-40292","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704903515},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/40292","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=40292"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/40292\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=40292"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=40292"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=40292"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}