Cabinet approves amended Sri Lanka–Luxembourg double taxation agreement

The Cabinet of Ministers has granted approval to sign the protocol amending the Agreement on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion between the Democratic Socialist Republic of Sri Lanka and the Government of the Grand Duchy of Luxembourg.

Sri Lanka and Luxembourg have entered into an agreement to avoid double taxation on 31-01 2013, and both countries are members of the Inclusive Framework of the Base Erosion and Profit Shifting (BEPS) Project. The members of this project should implement at least the minimum standards of the G-20 OECD BEPS Action Reports. 

In line with these obligations, the tax officers of Luxembourg have submitted a few amendments to the aforementioned agreement in order to comply with the specified requirements. After studying these amendments, the tax officers of this country have given their consent, and accordingly, an amended agreement has been drafted. 

The clearance of the Attorney General and the observations of the Ministry of Foreign Affairs, Foreign Employment, and Tourism have been obtained for the drafted agreement. 

Accordingly, the Cabinet of Ministers has approved the proposal presented by the President, in his capacity as Minister of Finance, Planning, and Economic Development, to sign the protocol of the amended agreement for the avoidance of double taxation and prevention of tax evasion on income between the Democratic Socialist Republic of Sri Lanka and the Government of the Grand Duchy of Luxembourg.