India and Iran signed here in New Delhi today an Agreement for the Avoidance of Double Taxation (DTAA) and the Prevention of Fiscal Evasion with respect to taxes on income.

The Agreement is on similar lines as entered into by India with other countries. The Agreement will stimulate flow of investment, technology and personnel from India to Iran& vice versa, and will prevent double taxation. The Agreement will provide for exchange of information between the two Contracting Parties as per latest International Standards. It will improve transparency in tax matters and will help curb tax evasion and tax avoidance.

The Agreement also meets treaty related minimum standards under G-20 OECD Base Erosion & Profit Shifting (BEPS) Project, in which India participated on an equal footing.

Avoidance of Double Taxation agreement strengthens cross-border investment by preventing double taxation and enabling information exchange. An Agreement between India and Iran establishes reciprocal relief from double taxation, mechanisms to prevent fiscal evasion, and provisions to facilitate cross-border investment and personnel movement. It includes an exchange of information standard aligned with international norms to enhance tax transparency and curb tax avoidance, and it meets treaty-related minimum standards of the G 20/OECD BEPS Project.