The Cabinet has approved the Memorandum of Understanding (MoU) between Sri Lanka and India for the avoidance of double taxation and the prevention of tax evasion with respect to income.
The Government of Sri Lanka and the Government of India had entered into an agreement in 2013 to avoid double taxation and the prevention of tax evasion with respect to income.
As Sri Lanka and India are members of the Inclusive Framework of the Base Erosion and Profit Shifting (BEPS) Project, they are committed to implementing the minimum standards of the Group of 20 Organization for Economic Cooperation and Development (G20) plan.
Accordingly, the need to amend the Agreement for the avoidance of double taxation and the prevention of tax evasion signed in 2013 was identified.
The revised protocol, which has been prepared with the necessary amendments, has received the approval of the Ministry of Foreign Affairs, Foreign Employment and Tourism and the clearance of the Attorney General.