An extract of a notice published in the Ministry of Finance website relating to Inland Revenue Act, No. 24 of 2017 is quoted below for your information.
“Policy Decisions on the Amendment to Inland Revenue Act, No.24 of 2017”
PUBLISHED ON 11TH OCTOBER 2018
The amendments to the Inland Revenue Act, No.24 of 2017, as proposed by the Minister of Finance, with the view of effective implementation, have been approved by the Cabinet of Ministers by the decisions dated 27.03.2018 and 30.05.2018. The Legal Draftsman is instructed to draft the necessary legal provisions to give effect to the following decisions.
- Exemption of the interest earned by children under 18 years of age, on deposits maintained in any financial institutions, from Income tax.
- Reduction of Withholding Tax (WHT) rate applicable on Rent from 10% to 5%.
- Exemption of the Royalty payments made to residents, which do not exceed Rs.50,000/- per month, subject to a maximum of Rs. 500,000/-per year of assessment, from WHT.
- Exemption of the lease rentals paid to non-residents in relation to the Leasing of Aircrafts, by a resident entity engaged in the air transportation from WHT.
- Exemption of interest paid to non-residents on loans obtained by any person.
- Exemption of any gain including interest, discount or capital gain earned by non-residents on sovereign bonds denominated in local or foreign currency, issued by or on behalf of the Government.
