Tax Incentives and Exemption on Colombo Port City Project - Sri Lanka

The Colombo Port City project, a Special Economic Zone (SEZ) in Sri Lanka, offers a number of tax incentives and exemptions to investors. These incentives are designed to attract foreign direct investment and boost economic growth.

Tax Incentives

A 50% concessionary rate of corporate income tax for up to 10 years.
An enhanced capital allowance of 300% on depreciable assets.
Exemption from withholding tax on dividends, interest, and royalties paid to non-residents.
Exemption from value-added tax (VAT) on imports of goods and services for use in the SEZ.
Exemption from customs duty on imports of capital goods and machinery for use in the SEZ.

Tax Exemptions

Exemption from income tax on capital gains from the sale of shares in a company incorporated and operating in the SEZ.
Exemption from estate duty on the transfer of assets located in the SEZ.
Exemption from gift tax on the transfer of assets located in the SEZ.

These incentives are available to a wide range of businesses, including those in the following sectors:

Technology
Finance
Shipping
Logistics
Tourism
Manufacturing
Trading

To qualify for the tax incentives, businesses must be registered with the Colombo Port City Economic Commission and obtain a Certificate of Investment.

The Colombo Port City project is still under development, but it is expected to have a significant impact on the Sri Lankan economy. The tax incentives and exemptions are designed to attract foreign investment and create jobs. The project is also expected to boost Sri Lanka’s exports and make it a more attractive destination for tourists.

Benefits of the Tax Incentives and Exemptions

The tax incentives and exemptions offered by the Colombo Port City project are expected to have a number of benefits, including:

Attracting foreign direct investment
Creating jobs
Boosting exports
Making Sri Lanka a more attractive destination for tourists
Increasing government revenue in the long term

Conclusion

The Colombo Port City project is a major investment in Sri Lanka’s future. The tax incentives and exemptions offered by the project are designed to attract foreign investment and boost economic growth. The project is expected to have a significant impact on the Sri Lankan economy, creating jobs, boosting exports, and making Sri Lanka a more attractive destination for tourists.