3. Reducing the tax burden on “global” companies in the host country, improving the competitiveness of these companies. NOTE: The exemption/reduction in Iceland under the current agreements can only be achieved if the Director of Internal Revenue requests an exemption/reduction on Form 5.42. Until there is an exemption allowed with the number one registered, you have to pay taxes in Iceland. The agreement on the prevention of double taxation between India and Singapore currently provides for a tax based on the residence of the capital gains of a company`s shares. The third protocol amends the agreement effective April 1, 2017, which provides for a tax at the source of capital gains from the transfer of shares of a company. This will reduce revenue losses, avoid double non-taxation and streamline investment flows. In order to ensure the safety of investors, equity investments made before April 1, 2017 were processed in accordance with the benefit limitation clause provided by the 2005 Protocol, in accordance with the terms of the benefit limitation clause. In addition, a two-year transitional period was provided between April 1, 2017 and March 31, 2019, during which capital gains on shares in the source country are taxed at half the normal rate, subject to compliance with the terms of the benefit limitation clause. Various factors, such as political and social stability, an educated population, a sophisticated public health and justice system, but above all corporate taxation, make the Netherlands a very attractive country where they do business.
The Netherlands applies corporation tax at a rate of 25%. Resident taxpayers are taxed on their global income. Non-resident taxpayers are taxed on their income from Dutch sources. In the Netherlands, there are two types of double taxation relief. Economic double taxation relief is available for the proceeds of significant equity stakes in the participation. Resident taxpayers receiving foreign income receive legal aid in the event of double taxation. In both cases, there is a combined system that makes a difference in active and passive income.  The tax benefits granted by the DBA for payments can be granted in two ways. On the one hand, there may be a tax exemption or a reduced rate for corresponding payments.