Press Information Bureau

Government of India

Ministry of Finance

25-May-2012 16:17 IST

India and Netherlands sign Protocol Amending DTAC

The Convention between the Kingdom of Netherlands and the Republic of India for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income and on capital was signed on 30th July, 1988 (DTAC). Both India and Netherlands have concluded a Protocol to amend the Article 26 of the DTAC concerning Exchange of Information to bring it in line with the international standards.

On 10th May, 2012, India and Netherlands have signed the Protocol at The Hague, Netherlands. The protocol was signed by Ms. Bhaswati Mukherjee, Ambassador of India to The Netherlands and Mr. F.H.H.Weekers, state Secretary of Finance, Netherlands. The Protocol will replace the Article concerning Exchange of Information in the existing DTAC between India and Netherlands and will allow exchange of banking information as well as information without domestic interest. It will, now, allow use of information for non-tax purpose if allowed under the domestic laws of both the countries, after the approval of the supplying state.

DSM/SS/GN

Exchange of information expanded to permit banking data and non tax use where domestic law and supplier approval allow. The Protocol replaces Article 26 of the India-Netherlands DTAC to align Exchange of Information with international standards, expressly allowing banking information and information without a prior domestic interest threshold, and permitting non tax use only if domestic law allows and the supplying State approves.