Tax Invoice in Sri Lanka: A Comprehensive Guide
A tax invoice is an essential document in the administration of Value Added Tax (VAT) in Sri Lanka. It serves as evidence of a taxable transaction between a VAT-registered supplier and customer. Understanding the key elements of a tax invoice and the regulations surrounding its issuance is crucial for compliance with Sri Lankan tax laws….
Tax payment relief in the face of Covid-19
President provides relief in the face of Covid-19 on tax payments, based on that Income Tax & VAT payment due date has been extended up to 30 April 2020. Following questions and implications can be identified based on the above decisions: Income Tax Tax on employment income (PAYE/WHT) for the month of March is due on…
IRD Notice on Taxpayer Registration, Income Tax Payments and Furnishing Return of Income for the Year of Assessment 2019/2020
IRD Notice on Taxpayer Registration, Income Tax Payments and Furnishing Return of Income for the Year of Assessment 2019/2020. In accordance with the amendments to the Inland Revenue Act, No. 24 of 2017 passed in Parliament on the May 4, 2021; Resident individuals whose employment income was subjected to PAYE prior to January 1, 2020…
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…
Revised IRD Notice on Requirement of Tax Clearance Certificates for Outward Remittances
IRD has informed that the Notice issued on 08 April, 2020 under the reference No. PN/TC/2020-03 is still valid and all Commercial Banks & Authorized Dealers Engaged in Outward Remittances and the Persons who make Outward Remittances are kindly requested to adhere to the procedure sets out in said notice. Download IRD Notice No. PN/TC/2020-04 (Revised) | Dated: 03…
Summary of certain amendments to Finance Act by E&Y
A Finance Bill dated August 10, 2018 has been published by the Government, as proposed in the Budget 2018, to provide for the amendment of certain levies, taxes or fees imposed under respective Finance Acts, and for the imposition of certain new levies, taxes or fees. A synopsis of certain such provisions are given in…
Special Commodity Levy on Potatoes
Special Commodity Levy has been imposed on Potatoes and shall be valid until March 31, 2018 commencing from February 24, 2018. Download – English Download – Sinhala
Capital Gains Tax (CGT)
Principal Act Capital Gains Tax is governed by the Inland Revenue Act, No. 24 of 2017 (as amended). Scope of Liability & Chargeability CGT is payable on the gains from the realisation (e.g., sale, exchange, transfer) of investment assets. The gain is calculated as the amount by which the consideration received for the asset exceeds…
Tax Residency Certificate (TRC)
Taking in to account the prevailing situation in the country, the Department of Inland Revenue has published a notice by specifying a temporary arrangement to obtain Tax Residency Certificates (TRC). Download IRD Notice
Further extension on VAT Deferment Facility & Temporary Registration
Department of Inland Revenue has published a public notice by amending the public notice number PN/VAT/2020-09 issued on 29.06.2020 as follows. VAT Deferment Facility on Imports at the Customs/BOI Validity of the last issued extension letters with regard to Credit Vouchers (CV) due against the VAT deferred at the Customs/BOI under deferment facility, has been further extended…
Certificate of Tax Deductions – T10
Department of Inland Revenue has published Certificate of Income Tax Deductions prescribed under Section 87 of the Inland Revenue Act, No. 24 of 2017. Certificate of Income Tax Deductions - Primary Employment – (PAYE/T10(new)) Certificate of Income Tax Deductions - Secondary Employment – (PAYE/T10(new)/D)
Parliament amends the NBT Act revising exemptions
The Parliament passed the Nation Building Tax (Amendment) Bill, providing amendments to certain provisions of the Nation Building Tax Act, No. 9 of 2009 (“NBT Act”). This new Amendment Act which is yet to receive the certification of the Speaker has been analysed by us based on the Nation Building…
Quantification of Values for Non-Cash Benefits in calculating Employment Income – Circular No. SEC/2022/E/05(Revised) [07 February 2023]
The Circular SEC 2022/E/05 (Rev) issued by the Inland Revenue Department (IRD) of Sri Lanka provides guidance on the quantification of values for non-cash benefits in calculating employment income for tax purposes. The circular defines non-cash benefits as any benefit provided by an employer to an employee, other than cash, that has a monetary value….