Ukraine and Sri Lanka to sign agreement on avoiding double taxation

Monday, 23 September 2013 01:09 -     - {{hitsCtrl.values.hits}}

Ukraine and Sri Lanka will sign an agreement to avoid double taxation and prevent tax evasion with respect to taxes on income and capital, Ukraine announced. The Ukraine Cabinet of Ministers has adopted a draft decree on signing the agreement between the governments of Ukraine and Sri Lanka for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income and capital. The agreement aims to avoid double taxation on income of individuals and entities that occur in both countries. It also aims to prevent tax evasion, eliminate tax discrimination and establish mechanisms to improve cooperation between the tax authorities of Ukraine and Sri Lanka by establishing mutual agreement procedure of disputes. The agreement will also allow provision of tax information exchange. According to the Ukrainian cabinet, this draft of the agreement provides to tax dividends, interest and royalties at a rate of 10% that meets requirements of the OECD Model Convention, and to exchange tax information between countries.