New amendments to VAT Law

VAT Bill was passed in Parliament on 23 October 2019 which is yet to be certified by the Hon. Speaker 1.Supply of residential accommodation Effective from April 1, 2019, the supply of condominium housing is liable to VAT unless exempted. Exemptions a)The supply of a condominium housing unit of a condominium housing project and the maximum…

Read More

How to activate VAT Registration

Further to the IRD Notice on “Voluntary Registration for VAT”,  Any person who wishes to continue the VAT Registration (whose Registration is inactivated) should make submission along with following documents. Application for activation of VAT Registration Request letter which should be signed by a Director (In the case of Company) or Proprietor (Sole Proprietorship) or…

Read More

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

Read More

What is Employment Income | How to calculate Assessable Income from Employment for the Y/A 2023/2024 & Y/A 2024/2025

Employment income is an essential component of taxation, representing the total gains and profits derived from an individual’s employment. This includes all remuneration received in cash or kind from an employer as compensation for services rendered. For the year of assessment (Y/A) 2023/2024 in Sri Lanka, employment income plays a pivotal role in calculating the…

Read More

Further Instructions on Alternative Tax Payment System (ATPS) through Online Fund Transfer Facility

Department of Inland Revenue has published notice by providing further instructions in addition to the notice published on 08.04.2020 (No. PN/PMT/2020-1) on Alternative Tax Payment System (ATPS) through Online Fund Transfer Facility, by considering some practical issues encountered by the taxpayers. Download IRD Notice No.: PN/PMT/2020-3 | Dated: 14.05.2020

Read More