NEW DELHI, July 6 (UPI) -- The island nation of Mauritius indicated Friday it will close loopholes in its tax-avoidance treaty with India but will remain firm on a capital gains clause.
Mauritius is working to fix the treaty to ensure companies don't take advantage of it, The Wall Street Journal reported.
During a meeting with reporters in New Delhi, the foreign minister of Mauritius, Arvin Boolell, indicated that while his country wants to prevent any undue advantage companies may try to take under its tax-avoidance treaty, it was not willing to change the capital gains clause, a key feature of the treaty.
Under the treaty, capital gains can be taxed in Mauritius, the Journal said. But the small 3 percent capital gains tax is one reason Mauritius is an appealing channel for investments into India.