Sri Lanka to ink new tax treaties with India, Turkey and Czech Republic

The Cabinet nod has been granted to the Finance Ministry to enter into agreements on double taxation and tax evasion on income tax avoidance with India, Turkey and the Czech Republic.

Finance Minister Basil Rajapaksa on Monday sought the approval of the Cabinet of Ministers to sign relevant treaties and to submit them to parliament for approval as per the provisions of the Inland Revenue Act No. 24 of 2017.

Accordingly, the government would sign a new agreement with the Indian government to avoid double taxation and tax evasion on income tax revising the current double taxation avoidance treaty.

Similar treaties would be signed with Republic of Turkey and the Czech Republic. Currently, Sri Lanka doesn’t have a double taxation avoidance treaty with Turkey.

Sri Lanka has 45 bilateral double taxation avoidance treaties and one multilateral treaty in place.