Sri Lanka : Sri Lanka’s new Tax Act comes into effect from today #Sri_LankaJanuary 11, 2019
Apr 01, Colombo: Sri Lanka’s new Inland Revenue act aimed at simplifying the taxes and ease the burden on the low-income people, will come into effect from today, Inland Revenue Department says.
New Tax Revenue Act No.
According to the Finance Minister Mangala Samaraweera the act will ease the burden on the low-income people and effectively implement the revenue laws on the high-income group.
The Minister earlier said the main objective of the new Inland Revenue Act is to simplify the tax system in order to create an investor friendly environment that will attract more foreign direct investments.
The Minister notes that there has been no increase in tax revenue in parallel to the rise in the country’s income and Sri Lanka’s tax revenue remains low when compared to other countries in the region.
However people earning an annual income below Rs.
300,000 and 20% on incomes from Rs.
For income above Rs.
However, if the payee lived in the property for more than 3 years, the tax will be exempted.
The Department of Inland Revenue said the profits earned from selling shares in stock market will not be taxed.
However, taxes will be imposed at 4% on incomes from Rs. 100,000 to Rs. 150,000, 8% from Rs 200,000 to Rs 250,000, 12% from Rs. 250,000 to Rs. 300,000. 16% from Rs. 300,000 and 20% on incomes from Rs. 300,000 to Rs. 350,000. For income above Rs. 350,000 the tax rate would be 24%.
A tax has also been introduced on the profits from the sale of a properties including houses and vehicles. The Capital Gain Tax wil…