India and Maldives signed six critical agreements related to cooperation in taxation and defence during the visit of Maldivian President Abdulla Yameen Abdul Gayoom.

The agreements were signed here during the meeting between Prime Minister Narendra Modi and President Yameen on Monday.

Both sides signed two pacts on taxation. One pact is for avoiding double taxation of income derived from international air transport and the other is for exchange of information with respect to taxes.

The pact on double taxation arising out of international air transport is relevant to the administration and enforcement of domestic laws concerning taxes covered by the agreement.

It also includes exchange of information relevant to the determination, assessment and collection of such taxes, the recovery and enforcement of tax claims, or the investigation and prosecution of tax matters.

“It is clear that the contours of India-Maldives relations are defined by our shared strategic, security, economic and developmental goals,” Modi said after his meeting and a working lunch with President Yameen.

Modi also underlined India’s strategic interest in having a “stable and secure” Maldives.

Both sides also signed an action plan for defence cooperation. “The Action Plan is in the context of defence cooperation being an important component of the India-Maldives relationship and the shared strategic and security interests of the two countries in the Indian Ocean region,” stated a press release by the Ministry of External Affairs.

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