OREANDA-NEWS. September 23, 2013. A draft decree of the Cabinet of Ministers on Signing the Agreement between the Government of Ukraine and the Government of the Democratic Socialist Republic of Sri Lanka for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income and capital has been adopted at a meeting of the CMU of Ukraine.

The aim of the signing of this Agreement is to avoid double taxation on income of individuals and entities that occur in both countries.

It should be noted that the agreement also aims to:

- prevention of tax evasion;

- elimination of tax discrimination;

- establishing mechanisms to improve cooperation between the tax authorities of Ukraine and Sri Lanka by establishing mutual agreement procedure of disputes;

- provision of tax information exchange.

This draft of the Agreement provides to tax dividends, interest and royalties at a rate of 10% that meets requirements of the OECD Model Convention, and to exchange tax information between countries.