Withholding Tax on Interest paid by Banks or other Financial Institutions

Department of Inland Revenue has published a circular, which sets out explanatory notes and guideline to any Banks or other Financial Institution, to facilitate the application of the Section 84 of the Inland Revenue Act No. 24 of 2017, with effective from April 1, 2018, for the deduction of income tax from interest, discount or income from Islamic financial transaction payable or paid by Banks or other Financial Institutions to any person on any sum of money deposited or invested as the case may be; with Sri Lankan rupees or any other foreign currency.