At a press briefing on Cabinet decisions from 2 September 2024, Sri Lanka’s Cabinet announced its approval for signing an income tax treaty with Austria.
According to the convention, Sri Lanka will be taxed at a rate not exceeding 10% of the gross amount for interest and state dividends in accordance with the double taxation avoidance conventions recently concluded by Sri Lanka.
The Council of Ministers approved the proposal presented by the Honourable President as the Minister of Finance, Economic Stabilization and National Policy to sign the agreement at the state level and submit the signed agreement and alliance paper to Parliament as per the provisions of the Inland Revenue Act No. 24 of 2017.
By January 2024, Sri Lanka had signed income tax treaties with 46 countries. Additionally, a multilateral treaty with the South Asian Association for Regional Cooperation (SAARC) was signed in 2005.
The treaty will be the first of its kind between the two countries and must be finalised, signed, and ratified before it can take effect.
