Circular stating instructions to taxpayers for requesting a private ruling
Department of Inland Revenue has published a Circular stating instructions to taxpayers for requesting a private ruling – Circular No. SEC/2018/07.
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Extension for Tax on Terminal Benefits till June 30, 2021
Notice to ETF Board, Provident Funds and Employers who have retained the Tax on Terminal Benefits to Retiring Employees. Any amount retained by the Employees’ Trust Fund (ETF) Board, any Provident Fund or Employer (hereinafter referred to as the “Retainers”) as per the Guideline published by Circular No. SEC/2020/02 of the Commissioner General of Inland…
Special Commodity Levy on Potatoes
Special Commodity Levy has been imposed on Potatoes and shall be valid until March 31, 2018 commencing from February 24, 2018. Download – English Download – Sinhala
Implementation of Proposed Changes to the Inland Revenue Act No. 24 of 2017
Department of Inland Revenue has published a notice (PN/IT/2020-03) on 12 February 2020 pertaining to changes proposed to the Inland Revenue Act, No. 24 of 2017. These changes mainly relate to the following: Removal of Withholding Tax (WHT) on the payments made to Resident Persons WHT on the payments made to Non-Resident Persons Revision of Income…
Summary of Provisions in the Finance Act No. 35 of 2018
The Finance Act No. 35 of 2018 has been enacted (Certified on November 01, 2018) consequent to the respective proposals made in the Budget 2018, to provide for the amending of certain levies, taxes or fees imposed under respective Finance Acts, and for the imposition of certain new levies, taxes or fees. Outline of the…
Tax Invoice in Sri Lanka: A Comprehensive Guide
Tax Invoice in Sri Lanka: A Comprehensive Guide By Kokila Mudugamuwa A tax invoice is an essential document in the administration of Value Added Tax (VAT) in Sri Lanka. It serves as evidence of a taxable transaction between a VAT-registered supplier and customer. Understanding the key elements of a tax invoice and the regulations surrounding…
Budget 2019 – Proposals on Value Added Tax (VAT)
Value Added Tax (VAT) [Amendments to the Value Added Tax Act, No.14 of 2002] The piece based VAT rate applicable on domestic sale of certain garments by the export oriented BOI companies will be revised from Rs.75/- to Rs.100/-. The term “locally produced rice products” will be re-defined for the purpose of clarity and certainty….
WHT Return Format and Updated WHT Schedules
Department of Inland Revenue has published updated WHT Schedules which are applicable form the Y/A 2019/20 onwards. WHT Return Format for the Y/A 2019/2020 Statement of Withholding Tax – Y/A 2019/2020 Guidelines to Fill the Statement of Withholding Tax Schedules to Withholding Tax Return Original Schedules Schedule 1 – Withholding Tax Deduction from Interest /…
6% VAT Rate for Condominium Housing Units
IRD Notice to VAT Registered Persons who supply Condominium Housing Units As per the Bill and subsequent Committee Stage Amendments (CSA) as passed in Parliament on the 23rd October 2019 to amend Value Added Tax Act, No. 14 of 2002 (VAT Act) including section 22 and item (xi) of paragraph (b) of the First Schedule to…
Bill to amend the Value Added Tax Act No. 14 of 2002
An amendment proposal to the Value Added Tax Act No. 14 of 2002 was officially released on August 31, 2023, and awaits presentation in Parliament. The purpose of this post is to elucidate the key provisions contained within this proposal. It is essential to underscore that the content of this Bill remains subject to potential…
Nation Building Tax (Amendment) under Bill stage
Based on the cabinet decision taken on 27.03.2018, Nation Building Tax (Amendment) [Issued on 31.05.2018] is under bill stage (I,e. Subject to enacted by the parliament). to amend the Nation Building Tax Act, No. 9 of 2009. Summary of the bill stated below. This amended is to limit the period of exemption granted to certain…
Income Tax and VAT Bills
The Government has published bills to amend the Income Tax and VAT Act. These bills subject to pass by the parliament and certify by the Hon. Speaker. Income Tax Income Tax (Amendment) Bill – English Income Tax (Amendment) Bill – Sinhala VAT VAT (Amendment) Bill – English VAT (Amendment) Bill – Sinhala
Embarkation Levy – Gazette No. 2116/62
With effective from 01 April 2019, Government has increased Embarkation Levy by USD 10 and new levy as follows; Person leaving Sri Lanka by aircraft – USD 60.00 Person leaving Sri Lanka by ship – USD 60.00 Download Embarkation Levy Gazette