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Department of Inland Revenue has published New Circular No. SEC/2018/06 (by withdrawing the Circular No. SEC/2018/05) to Withholding Agents – Withholding from Payment made under Section 84 and 85 of the Inland Revenue Act No. 24 of 2017
“Resident individual” means what under sec 85????
An individual shall be a resident in Sri Lanka for a year of assessment if the individual –
(a) resides in Sri Lanka;
(b) is present in Sri Lanka during the year and that presence falls within a period or periods amounting in aggregate to one hundred and eighty three days or more in any twelve month period that commences or ends during the year;
(c) is an employee or an official of the Government of Sri Lanka and his spouse is posted abroad during the year; or
(d) is an individual who is employed on a Sri Lanka ship, within the meaning of the Merchant Shipping Act, during the period the individual is so employed.
HI,
A property belonging to my company has been rented out to another company. And that company is going to deduct the 10% withholding tax from the rent payable to my company. Can you please advise me whether the other company can deduct the said withholding tax from the rent payable to my company. Thank you in advance
Dear Perera,
As per the Section 84 of the New IRA, 10% WHT should be deducted from rent which has a source in Sri Lanka and which is made by a person (Other Company, I, e. WHT Agent) to any Resident person (Your Company).