Double Taxation Avoidance Agreement With Sri Lanka

07 Déc Double Taxation Avoidance Agreement With Sri Lanka

The minimum standards under BEPS 6 can be met by the multilateral agreement on the implementation of tax contract measures to prevent erosion and profit shifting (base) or through bilateral agreements. « The EU cabinet, chaired by Prime Minister Narendra Modi, has approved the signing and ratification of the protocol amending the India-Sri Lanka agreement to avoid double taxation and prevent tax evasion with regard to income taxes, » an official press release said. The agreement to avoid double taxation between India and Sri Lanka was amended on Wednesday, according to an official press release. Wednesday`s amendments include changes in the text of the preamble to the agreement and inclusion in the agreement on the prevention of double taxation of the main criterion, a general provision and the fight against abuse. « DTAA will create a more attractive investment climate and give foreign investors a chance, » Guruge said, adding that since Sri Lanka in 1950, the first such agreement was signed with Britain, 46 such agreements have been signed with many other countries and some have been updated to adapt the changes. India and Sri Lanka are members of the inclusive framework and must therefore implement the minimum standards set out in the OECD GPS BePS action reports for their DBAAs with OECD framework countries. The minimum standards under BEPS 6 can be met by the multilateral agreement on the implementation of tax contract measures to prevent erosion and profit shifting (base) or through bilateral agreements. According to the Ministry of Finance (IRD), General Nadun Guruge, the DBA will be signed with Ukraine, the Maldives, Hungary, Cyprus, Austria and the agreement with the renewed United Kingdom. « Preliminary work on the agreements will be completed shortly and the DBAA will be signed later, » the Commissioner said, adding that such agreements are essential to promoting trade and investment. 03.02., Colombo: Sri Lanka will sign agreements with six countries to avoid double taxation (DBA) to facilitate and promote trade and investment, the government`s information department said. The Double Tax Avoidance Agreement (DBAA) is a tax agreement signed between two or more countries to help taxpayers avoid double taxes on the same income. A DTAA is applicable in cases where a person is established in one nation but earns income in another nation.

Sri Lanka recently signed a DBAA with Turkey in Ankara to improve tax transparency and contribute to the fight against tax evasion. Guruge said such initiatives would help improve investment flows, trade and boost the tourism sector. On Wednesday, the EU cabinet approved changes to the current double tax evasion agreement with Sri Lanka, a step in the fight against tax evasion. India and Sri Lanka are members of the integration framework and must therefore implement the minimum standards set out in the OECD G-20 BePS Action Reports for their DBA A. Lead Ms Visveswaraya: An engineer par excellence – India is a signatory to the MLI. However, Sri Lanka is not currently a signatory to the MLI. Therefore, a bilateral amendment to the India-Sri Lanka DBAA is required to update the preamble and also to include the Main Use Test (TPP) provisions to meet the minimum standards for contractual abuses under Action 6 of the G20 Base Erosion – Profit Shifting (BEPS) project. The existing DBAA between India and Sri Lanka was signed on 22 January 2013 and came into force on 22 October 2013.