Sri Lanka to sign double taxation avoidance treaty with Turkey | Daily News


 

Sri Lanka to sign double taxation avoidance treaty with Turkey

Sri Lanka and Turkey will sign a double taxation avoidance agreement that seeks to improve transparency in tax matters and help curb tax evasion and avoidance. The agreement would be signed on Wednesday, by the Commissioners General of Tax of the two countries in Turkey, Commissioner General of Inland Revenue Department (IRD), Nadun Guruge said.

Guruge who is already in Ankara, the capital of Turkey, told the Daily News Finance, such an initiative would help improve the flow of investment, trade activities and tourism sectors. “It would also help improve transparency in tax matters and would help curb tax evasion and tax avoidance,” he said. Guruge left Sri Lanka with several other senior officials of the IRD on January 20, to sign the agreement and discuss matters pertaining to the taxes between the two countries.

Tax consultants say double taxation treaties stimulate the flow of capital, technology and personnel from one country to another, by eliminating the burden of taxation in both countries. This would create a more attractive investment climate, giving an opportunity for foreign investors. Guruge said since Sri Lanka signed its first such agreement with Britain in 1950, 46 more such agreements have been signed with many other countries by now. Some have also been updated to suit the changes.


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