India Adds BEPS Provisions To Qatar Tax Treaty

India has approved amendments to its double tax agreement with Qatar.

The amendments update the information exchange provisions between the two countries in line with current international standards.

A new Limitation on Benefits (LOB) provision has been introduced, which is designed to prevent “treaty shopping” (whereby companies or transactions are structured through third countries to take advantage of favorable tax treaties in place in other jurisdictions).

This brings the double tax agreement into line with the minimum standards on treaty abuse under Action 6, and on improving dispute resolution procedures under Action 14 of the OECD’s base erosion and profit shifting Action Plan.