AIT / WHT

This circular provides clear instructions for Withholding Agents (WHA) on how to apply tax deductions under the Inland Revenue Act. These rules apply to specific payments that have a source in Sri Lanka. It replaces the older Circular No. SEC/2022/E/03, which is now officially terminated. Withholding Tax Rates at a Glance Depending on the type…

In Sri Lanka, the taxation landscape has been evolving, and one of the significant changes that have garnered attention is the imposition of a 5% Advance Income Tax (AIT) on interest and discount on deposits. This article delves into the critical aspects of this tax, as outlined in the Inland Revenue Department’s Circulars SEC/2022/E/02 and…