The new DBA removes the MFN (MFN) clause. The MFN prevented both countries from freely amending product-sharing contracts, as the clause requires a country to grant the same privileges, concessions and immunities to all WTO countries. Updating the agreement reduces withholding tax on branch royalties and profits. There is now a regulation on income tax on investments (capital gains) in addition to the inclusion of internationally agreed standards to resolve contractual abuses. The enhanced DBA agreement allows Singapore and Indonesian companies to benefit from a lower withholding tax on royalties. On 4 February 2020, at a meeting in Jakarta, Indonesia and Singapore signed the updated agreement on the abolition of double taxation and the prevention of tax evasion. Indonesia and Singapore signed their first DBA agreement in 1992 and negotiations began in mid-July 2015 to change the content. Both governments hope the recent changes can boost bilateral trade – which was worth more than $40 billion in 2019 – and investment flows between the two countries. COPS is one of the most important forms of legal agreements in the mining and energy industry.
The COPS defines the right of investors to obtain permission to explore and obtain hydrocarbon resources from the host government, in addition to determining profit-sharing. Capital gains were not regulated in the previous DBA agreement. It has been modified in line with the Organisation for Economic Co-operation and Development (OECD) model. The OECD model is an agreement developed by OECD countries, which focuses on guiding tax issues during bilateral negotiations. There is now a more explicit tax evasion prevention regime, which has not yet been implemented, as well as the exchange of tax information. . ACCORD FOR THE AVOIDANCE OF DOUBLE TAXATION AND PREVENTION OF FISCAL EVASION WITH ALBANIA THE GOVERNMENT OF INDIA WITH RESPECT TO TAXES TO INCOME and ON CAPITAL AGREEMENT FOR DOUBLE TAXATION AND PREVENTION OF FISCAL EVASION WITH THE THE Government of India and the Government of Afghanistan have concluded a summary text of the MULTILATERAL CONVENTION to IMPLEMENT TAXTREATY for copyrighted works of literature, art and cinema and eight per cent for the use of industrial, scientific or commercial material. In addition, the tax rate on branch profits has also been reduced from 15% to 10%. . Foreign investors are advised to use the services of registered local tax advisors to better understand how they can benefit from these recent changes.