Nepal sends letter to Mauritius on termination of Double Taxation Avoidance Agreement
Summary
Nepal has officially notified Mauritius about terminating the Double Taxation Avoidance Agreement signed in 1999 to align with new domestic tax reforms and global taxation standards. The termination will take effect from mid-July 2026, with plans for future tax cooperation based on mutual interests.
Key Points
- Nepal sent official notification to Mauritius to terminate the Double Taxation Avoidance Agreement from 1999.
- Termination follows extensive reforms in Nepal’s Income Tax Act including limitation-of-benefits provisions.
- The Council of Ministers approved the decision aligning it with global taxation system changes.
- Termination effective from fiscal year 2083/84 (mid-July 2026) to allow for new agreements reflecting current economic context.
