Both the countries agreed to amend to amend the existing Double Taxation Avoidance Agreement (DTAA) to bring in line with international standards, change in domestic laws and changed economic scenario and with a view to prevent fiscal evasion with respect to taxes on income.

A joint statement of cooperation between the two countries was issued here on Friday after meeting of the visiting Romanian Foreign Minister Titus Corlatean and the Indian External Affairs Minister Salman Khurshid.

The DTAA between India and Romania is in force since November 14, 1987. Both India and Romania have renegotiated the Agreement to bring in line with international standards, change in domestic laws and changed economic scenario. Once the amended Agreement enters into force, it will stimulate the flow of capital, technology and personnel from India to Romania and vice versa. It also provides tax stability and reduces any obstacles in providing mutual cooperation between India and Romania.

The Joint Statement issued after meeting of the two leaders also aims to further deepen political, economic and commercial ties between the two countries and enhanced cooperation in all fields including science and technology, higher education and research, defence, civil nuclear energy, space and agriculture.