New Delhi, Mar 20 (KNN) Eyeing at enhanced transparency between the two countries, India and Hong Kong signed a double taxation avoidance agreement (DTAA) recently.

The agreement between India and the Hong Kong Special Administrative Region (HKSAR) of the People's Republic of China was signed by Indian Ambassador to China Gautam Bambawale and his counterpart Hong Kong Finance Secretary Paul Chan Mo-po in Hong Kong, an official release informed.

The release further said that with the treaty in place, it is expected to improve transparency in tax matters and help reduce tax evasion and avoidance.

The DTAA or Double Taxation Avoidance Agreement is a tax treaty signed between two or multiple countries so that taxpayers can avoid paying double taxes on their income earned from the source country as well as the residence country.

At present, India has double tax avoidance treaties with more than 80 countries around the world. (KNN/DA)