Speaking to CNBC-TV18, Stubb said the finance ministers of both the countries are trying to work out the interpretations of the Double Tax Avoidance Agreement (DTAA) in order to settle the Rs 2000 crore tax dispute.
"I think it is very important that this issue is sorted. Nokia has paid more than 650 million euros in taxation here in India and in any case nowadays life is not that simple with taxation because companies have very broad value chains," Stubb said.
Indian Income Tax Department had slapped Nokia's Indian arm with a Rs 2000 crore notice for withholding tax norms since 2006 while making royalty payments to the parent company in Finland.
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