Singapore could follow Mauritius as tax haven for FDI

Posted: 2004-12-09 00:00:00+05:30 IST
Updated: Dec 09, 2004 at 0000 hrs IST

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New Delhi, Dec 8: investors. Indian companies engage in ‘round-tripping’ of investments through Mauritius and other tax havens like Bermuda and British Virgin Islands. However, as budget ’04 had removed capital gains tax, the advantage due to DTAT has somewhat diminished.

Although Mauritius continues to be single largest source of FDI in India, its relative significance has been declining. FDI from Mauritius declined sharply during the last two years, constituting 26.1% of total FDI flow to India in 2003-04 as against 32.2% in 2002-03 and 62.3% in 01-02....