India and France Revamp Tax Treaty to Boost Economic Ties

India and France have revised their Double Taxation Avoidance Agreement (DTAC) to incorporate the latest international standards, significantly impacting the taxation of capital gains and dividends.

The updated protocol, signed by top officials during President Emmanuel Macron's visit to India, removes the Most-Favoured-Nation (MFN) clause and aligns 'Fees for Technical Services' definitions with the India-US treaty. This move is expected to enhance tax certainty and facilitate greater economic synergy between the two nations.

The revision also updates information exchange provisions and introduces a new article on tax collection assistance, ensuring seamless bilateral cooperation. This treaty amendment promises to attract further French investments and boost Indo-French business and economic relations.