Central Bank Circular on Concessions Granted to Tourism Industry
Central Bank has issued a circular on concessions granted to Tourism Industry. Circular No. 07 of 2019 (on 08.05.2019)
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IRD Notice on Exemption of VAT on supply of Residential Accommodation
Supply of residential accommodation by way of sale of Condominium housing unit by any person is exempt from VAT with effect from December 01, 2019. Accordingly, VAT is not applicable on the sale of condominium Housing Unit with effect from December 01, 2019, subject to formal amendment to the Value Added Tax Act No. 14…
Certain Healthcare Services are exempt from Value Added Tax (VAT)
Department of Inland Revenue has published notice on Implementation of Changes to Value Added Tax (VAT) on Healthcare Services as published in the Extraordinary Gazette. As per the Extraordinary Gazette notification No. 2076/06 dated 2nd July 2018, for any period from 2nd July 2018, value of supply of Healthcare Services should comprise only the Hospital…
New policy changes
An extract of a notice published in the Ministry of Finance website is quoted below for your information. PUBLISHED ON 2ND NOVEMBER 2018 Download His Excellency the President, and the Honorable Prime Minister and Minister of Finance and Economic Affairs have raised concerns regarding the serious setback in the economy as reflected in the persistently low…
List of VAT Inactivated persons as at 30 January 2020
Department of Inland Revenue has published updated list of VAT Registration inactivated persons as at 30.01.2020. Download List: PDF | Excel
Customs changes on Budget 2021
Customs changes on Budget 2021 are as follows; 2021 Budget Import Cess Letter 2021 Budget Import Cess Annexure Order under Section 14 of Sri Lanka Export Development Act No. 40 of 1979 Revenue Protection Order No.08.2020 published under Revenue Protection Act No. 19 of 1962 Special Commodity Levy Act No. 48 of 2007
Ports and Airports Development Levy (Amendment) Bill
The new amendment to Ports and Airports Development Levy Act on rate revision. The key revisions are as follows; Items subject to a rate of 2.5%, will be subject to an increased rate of 5%; Items subject to a rate of 5%, will be subject to an increased rate of 7.5%; Specified items will be exempted…
Exempt amounts under third schedule of the Inland Revenue Act No. 24 of 2017
Exempt amounts under third schedule of the inland revenue act no. 24 of 2017 Download Schedule 01 Code Table 19/20
Value Added Tax (VAT) Temporary Registration – Extended up to June 30, 2021
Taking into account of the COVID – 19 pandemic situation in the country, period of validity of Temporary VAT Registration issued on or after 01.01.2019 for import or export, which gets expired on or before June 30, 2021 as per the certificate, has been extended up to June 30, 2021. Temporary registration is issued only to persons…
Updated VAT Quick Guide
Department of Inland Revenue has published an updated VAT Quick Guide by including instructions on newly introduced VAT schedules on Export of Goods and Services. VAT Schedule 06 : Article Export VAT Schedule To understand more about the structure of the VAT schedule 06 file, what the individual fields mean and the naming convention required,…
Legal enactment of ESC, NBT, PAL and Finance Bills
The Bills to amend the Finance Act, NBT Act, ESC Act and PAL Act were passed in Parliament and the relevant Bills were certified by the Hon. Speaker on October 12, 2020. Finance (Amendment) Act No. 2 of 2020 Terminated the levying of Debt Repayment Levy with effect from January 1, 2020 Nation Building Tax (Amendment) Act No. 3…
Ascertainment of Income Tax Payable for the Year of Assessment 2018/2019
How to compute income tax payable for the Y/A 2018/2019 who has obtained the approval for calendar year basis ? Taxpayers who have obtained the approval to make up their accounts for calendar year basis, the ascertainment of Income Tax payable for the year of assessment 2018/2019 has to be computed following manner; For…
Guideline for Deduction of PAYE Tax for the Period from 01.01.2020 to 31.03.2020
A new guideline has been prepared for the period from 01.01.2020 to 31.03.2020 and uploaded in the IRD web portal of the Department (Link) to provide instructions to the employers to deduct Withholding Tax under the PAYE Scheme, as instructed by the Ministry of Finance, (subject to formal amendment to the Inland Revenue Act, No….