The income and capital tax treaty between Luxembourg and Sri Lanka entered into force on April 11th, 2014. The treaty was originally signed January 31st, 2013, and include the following withholding rates:
- Dividends - 7.5% when paid to a company that holds at least 25% of the paying company's capital, otherwise 10%
- Interest - 10%
- Royalties - 10%
Note, however, that Luxembourg does not levy withholding tax on interest or royalties.
The treaty will apply January 1st, 2015.