The double taxation agreement came into force on May 21, 1980 and was amended by a change on February 13, 1980. “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. (b) any agreement reached in Section 17 of Law 4 of the Greater Colombo Economic Commission of 1978; o 1. Legislation in one of the contracting states continues to govern the taxation of income and capital in the contracting states concerned, unless this Convention expressly complies with it. Where income or capital is taxed in the two contracting states, double taxation is exempt in accordance with the following paragraphs of this article. “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. The agreement between the Government of the Republic of India and the Government of the Democratic Socialist Republic of Sri Lanka to avoid double taxation and prevent tax evasion on income and capital has been ratified and ratification instruments exchanged in accordance with Article 29 of the Convention. 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. This convention does not affect the tax privileges of diplomatic or consular officials under the general rules of international law or the provisions of specific agreements.
3. The competent authorities of the contracting states try to resolve by mutual agreement any difficulty or doubt about the interpretation or application of the convention. They can also agree on the elimination of double taxation in cases not provided for by the convention. 4. The competent authorities of the contracting states may communicate directly with each other in order to reach an agreement in accordance with the preceding paragraphs. The relevant authorities are developing appropriate bilateral procedures, conditions, methods and techniques for the implementation of the mutual agreement procedure under this article through consultations. In addition, a competent authority may develop appropriate unilateral procedures, conditions, methods and techniques to facilitate the above bilateral actions and the implementation of the mutual agreement procedure. 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.
“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. 2. The competent authority endeavours to resolve the matter by mutual agreement with the competent authority of the other State party with respect to tax evasion which is not in accordance with the convention, where the objection appears to be well founded and is not in a position to find a satisfactory solution.