Debt claim made by a person conducting a banking business
Where a person conducting a banking business makes specific provision for a debt claim in accordance with the relevant directives made by the Central Bank of Sri Lanka, subject to conditions as set out in the gazette (attached). No provision made in respect of potential risk of credit facilities in accordance with the relative directives made…
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…
Budget 2019 – Proposals on Income Tax
Income Tax (Amendments to the Inland Revenue Act, No.24 of 2017) Exemptions The Earnings by any non-resident person on any sovereign bond denominated in local or foreign currency will be exempted. Interest income earned by any resident person on sovereign bonds denominated in foreign currency, including Sri Lanka Development Bonds (SLDB) will be exempted. Interest…
Proposed Duty Changes – Vehicle Import
Budget 2018 – Proposed Duty Changes – Vehicle Import (2018 අයවැයෙන් වාහනවල යෝජිත Duty වෙනස්වෙන හැටි මෙන්න)
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…
No penalties for submission of Income Tax Return for the Y/A 2020/2021
According to the provisions of the Inland Revenue Act, No. 24 of 2017 (IRA), every person who is liable for Income Tax shall file a Return of Income not later than eight months after the end of each Year of Assessment. Therefore, last date to furnish the Return of Income for the year of assessment…
Tax Payments & Returns due dates – November 2020
Tax payments & Returns due dates and tax types & payment period codes for the month of November 2020 are as follows: NOVEMBER 15TH Corporate Income Tax (CIT) 2nd Instalment for the Y/A 2020/2021 is due on November 13, 2020 (Since November 14th & 15th fall on holidays) Tax Type: 02 Period Code: 20212 Individual Income…
Notice on Online Tax Registration
Taking into account of the COVID – 19 pandemic situation in the country, importers and exporters of goods are requested to obtain Taxpayer Identification Number (TIN) and Value Added Tax Registration (temporary or permanent) through e-Services provided in Inland Revenue web portal. Download IRD Notice: PN/TPS/2021-02 | Dated: 03.03.2021
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…
Interest and repayment of capital
The interest and repayment of capital under subsections (1) and (2) of section 31 of the Inland Revenue Act, No. 24 of 2017, shall be calculated as if the loan were a blended loan with interest compounded six-monthly or other period which is considered by the generally accepted accounting principles.
Discontinuation of Alternative Tax Payment System
Department of Inland Revenue has published a paper notice by informing that the Alternative Tax Payment System (ATPS) which was introduced temporarily due to the Covid – 19 pandemic situation will be discontinued effect from March 31, 2021. However, tax payment could be made, Through Online Tax Payment Platform (OTPP) or (For further information, visit…
Further Extension of Tax Return Submission Dates – up to 31 December 2020
Department of Inland Revenue has published a paper notice (PN/Tax Returns/2020-03) by in lining with the approval for “Tax Relief Measures to Facilitate Post COVID-19 Economic Recovery” granted by the Cabinet of Ministers on June 24, 2020, date of submission of following Tax Returns/statements has been further extended up to December 31, 2020. Annual Declaration…
How to search for system generated Paying-in-slip Number/ Payment Voucher Number /DIN number
Department of Inland Revenue has introduced a search facility to obtain system generated Paying-in-slip Number/ Payment Voucher Number /DIN number. Link to Search Paying-in-slip Number/ Payment Voucher Number /DIN number.