75. Double taxation agreements and mutual administrative assistance agreements

Official English translation. The Sinhala text prevails. Open the official Sinhala text, official PDF on documents.gov.lk

(1)

The Minister may give effect to any double taxation agreement or mutual administrative assistance agreement with a foreign government or governments that has been approved by Parliament and published in the

Gazette.

(2)

Subject to the provision of subsection (3), where there is any conflict between the terms of a double taxation agreement having legal effect in Sri Lanka and the provisions of this Act, the double taxation agreement prevails.

(3)

Subject to the provision of subsection (4), where a double taxation agreement provides that any income from a

Sri Lankan source is exempt or excluded from tax, or the application of the agreement results in a reduction in the rate of Sri Lankan tax, the benefit of that exemption, exclusion, or reduction shall not be available to a body that, for the purposes of the agreement, is a resident of the other contracting state when fifty percent or more of the underlying ownership or control of that body is held by an individual or individuals who are not residents of that other contracting state for the purposes of the agreement.

(4)

Provision of subsection (3) shall not apply if the resident of the other contracting state is a company listed on a stock exchange in that other contracting state.

(5)

In this section –

“double taxation agreement” means an international agreement relating to the avoidance of double taxation and the prevention of fiscal evasion;

and

“mutual administrative assistance agreement” means a tax information exchange agreement or other international agreement for mutual administrative assistance in relation to taxation matters.

Division III: Transfer Pricing

Read on from s 76

Part II

Read on from Part II

75. Double taxation agreements and mutual administrative assistance agreements

Part II

Schedules