Dec 16, Minsk: The Belarus government today announced that it has ratified an agreement with Sri Lanka to avoid double taxation on income.
The House of Representatives ratified the agreement between the Government of Belarus and the Government of Sri Lanka on the avoidance of double taxation and prevention of tax evasion with respect to taxes on income, Belarus official news agency BelTA reported.
The agreement between the two countries on Avoidance of Double Taxation and the Prevention of Fiscal Evasion was signed during Sri Lankan President Mahinda Rajapaksa's visit to Minsk in August 2013.
It aims to eliminate double taxation and to promote economic relations between the two countries and allows each party the right to tax certain types of income that natural persons and legal entities of one country get in the other country.
The agreement also provides for the exchange of information between the tax authorities of the two states, including for suppression of tax offences.
According to Deputy Minister for Taxes and Duties Ella Selitskaya, the agreement will create a long-term legal basis for a stable taxation regime for investors. The official stressed the importance of the document, taking into account the fact that the market of Sri Lanka is of great importance for Belarus.
Member of Permanent Commission for State Construction, Local Government and Regulations Elena Beresneva added that the bill would regulate tax relations between Belarus and Sri Lanka through provision each of the state with the right to tax certain types of income legal entities and individuals of one country get in the other.