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Tax Chart
Tax Chart
Year of Assessment 2018/2019
Tax rates for resident and non-resident Individuals
- Personal relief for residents/non-resident citizens of Sri Lanka is Rs. 500,000/- (not available for gains from the realization of investment asset).
- Additional relief (maximum) of Rs.700,000 is available on employment income (mmaximum tax rate applicable for employment income is 24%).
|
|
Taxable Income |
Rate |
| First Rs. 600,000/- |
4% |
| Next Rs. 600,000/- |
8% |
| Next Rs. 600,000/- |
12% |
| Next Rs. 600,000/- |
16% |
| Next Rs. 600,000/- |
20% |
| On Balance |
24% |
- Gains from realization of investment assets shall be taxed at the rate of 10%.
- Income from a business consisting of betting and gaming, liquor or tobacco shall be taxed at the rate of 40%.
|
Tax on Terminal Benefits from Employment
| Terminal Benefits |
Rate |
|
Paid under uniformly applicable scheme |
| On the first Rs. 5Mn of the aggregate sum where the period of services or contribution is not less than 20 years |
Exempt |
| On the first Rs. 2Mn of the aggregate sum where the period of services or contribution is less than 20 years |
Exempt |
| On the next Rs. 1,000,000 |
5% |
| On the balance |
10% |
|
Paid under non- uniformly applicable basis |
| Compensation for loss of office or employment (normal rates - subject to maximum rate) |
24% |
Tax Rates for Companies
|
Description |
Rate |
|
Standard Rate |
| Taxable income of a company (Other than companies taxed at special rates) |
28% |
|
Special Rates |
| Small and Medium Enterprises |
14% |
| Company predominantly conducting business of exporting goods & services |
14% |
| Company predominantly conducting an agricultural business |
14% |
| Company predominantly providing educational services |
14% |
| Company predominantly engaged in an undertaking for the promotion of tourism |
14% |
| Company predominantly providing information technology services |
14% |
| Income from a business consisting of betting and gaming, liquor and tobacco |
40% |
| Gains from the realization of investment asset |
10% |
| Remittance tax on non-resident companies |
14% |
| Relocating International headquarters in Sri Lanka |
0% (for 3 years) |
|
Tax Rate for Partnerships |
| Gains from realization of Investment Asset |
10% |
|
Tax Rates for Trusts |
Taxable income of a trust
(Other than gain on realization of investment asset) |
24% |
| Gains from realization of Investment Asset |
10% |
|
Tax Rates for Unit Trusts or Mutual Funds |
Taxable income of unit trusts or mutual funds
(Other than gain on realization of investment asset) |
28% |
| Gains from realization of Investment Asset |
10% |
|
Tax rates for Charitable Tnstitutions |
Taxable income of charitable institutions
(Other than gain on realization of investment asset) |
14% |
| Gains from realization of Investment Asset |
10% |
|
Tax rates for Non-Governmental Organization |
Taxable income of a non-governmental organization
(Other than gain on realization of investment asset) |
28% |
| Gains from realization of Investment Asset |
10% |
|
Tax rates for Employees Trust Funds, Provident or Pension funds and Termination Funds |
| Taxable income of Employees Trust Funds, Provident or Pension funds and Termination Funds |
14% |
Withholding Taxes
| WHT Rates applicable on the Income received as Investment Return |
| Description |
Rate |
| Interest or discount paid to a person |
5% |
| Interest paid to a senior citizen (Subject to relief) |
5% |
| Rent paid to a resident person |
10% |
| In all other cases (royalty, natural resource payment, dividend, reward etc.) |
14% |
|
WHT Rates applicable on the Service Fees and Contract Payment |
| Description |
Rate |
| Service fees referred to in section 85(1)(a) (on amounts exceeding Rs.50,000) |
5% |
| Service fees referred to in section 85(1)(b) |
14% |
| On the insurance premiums referred to in section 85 (1)(b) |
14% |
| On the each partner’s share of any Partnership Income |
8% |
| From the sale price of any gem sold at an auction conducted by the National Gem and Jewellery Authority |
2.5% |
Economic Service Charge
| Description |
Rate |
| Tax to be charged on liable turnover (Charged on turnover and applicable if quarterly turnover exceeds 12.5 Mn) |
0.5% |
| {Turnover of petrol, diesel & kerosene)* 1/10} + {Actual turnover of other lubricants + Any other goods or services (if any)} |
0.5% |
Value Added Tax
| Description |
Rate |
| Standard Rate |
15% |
| VAT on Financial Services (On the Value Addition on Financial Services) |
15% |
| On wholesale and retail business with turnover not less than Rs. 12.5 Mn per quarter |
15% |
| Direct export of goods & supply of certain services referred to in section 7 of the VAT Act (Zero rated supplies) |
0% |
Nation Building Tax
| Tax is chargeable if turnover for a quarter is Rs. 3 Mn or more |
| On the supply of locally procured agricultural produce if turnover is Rs. 25 Mn or more |
|
Description |
Rate |
| On liable turnover of Manufacturer and Service provider |
2% on liable turnover |
|
Wholesale or Retail Sale |
| On 25% of liable turnover of any distributor |
2% |
| On 50% of the liable turnover from Wholesale or Retail Sale(Other than any turnover of a distributor) |
2% |
| Supply of Banking and Financial Services |
2% of the Value Addition on Financial Services |
Stamp Duty
|
Specified Instrument |
Stamp Duty |
| Any Affidavit (from 13/5/2013) |
Rs. 50/- |
| Any Policy of General Insurance |
Rs. 1/- for Rs.1,000/- or part thereof |
| Any Warrant to act as Notary Public |
Rs. 2,000/- |
| Any foreign liquor license issued in respect of any calendar year |
Rs. 20,000/- |
| Any foreign liquor license issued from time to time for extending the period of the liquor shop conducted in any place for less than a calendar year |
Rs.20,000/- |
| Any arrack license out of the arrack licenses AFL 1, AFL 2, AFL 3 and AFL 4 or which are issued together with any Foreign Liquor (FL) license |
Rs. 2,000/- per license or 10% of License fee which is higher |
| Any license issued for the sale of bottled toddy |
Rs. 2,000/- per license or 10% of License fee which is higher |
| Any license issued authorizing the holder to carry on any trade, business, profession or vocation, other than any trade or business for the sale of liquor, for any period (as specified in such license) |
Rs. 2,000/- per license or 10% of License fee which is lower |
| Any claim, demand or request presented for the payment of any sum of money, due in respect of credit card transaction where the merchant country (the country in which the purchase of goods or services or the withdrawals of money taken place) thereof is a country other than Sri Lanka. |
Rs. 25/- for every Rs. 1,000/- or part of thereof such sum of money |
| Any Bond or Mortgage for any definite and certain sum of money and affecting any property |
Rs. 1/- per each Rs. 1,000 of the Mortgage Value or a part thereof |
| Any Lease agreement or hire agreement of any property |
Rs. 10/- per each Rs. 1,000/- of the Lease or Rental Value or part thereof |
| Any Promissory Note |
Rs. 1/- per each Rs. 1,000 of its value or a part thereof |
| Any receipt or discharge given for any money or other property |
Up to Rs. 25,000/- Exempt and Over Rs. 25,000/-, Rs.25/- |
| Any Receipt / Voucher on Gross Remuneration which include Salary, Allowances, Arrears, Overtime payment, Bonus etc. |
Up to Rs. 25,000/- Exempt and Over Rs. 25,000/-, Rs.25/- |
| Any Receipt / Voucher on other payment |
Up to Rs. 25,000/- Exempt and Over Rs. 25,000/-, Rs.25/- |
| Any Other Discharge |
Up to Rs. 25,000/- Exempt and Over Rs. 25,000/-, Rs.25/- |
Share Transaction Levy
|
Description |
Rate |
| On the turnover (of the buyer and the seller) |
0.3% |
Betting and gaming Levy
|
Description |
Rate |
|
Business of Bookmaker |
| Betting business done through Agents |
Rs. 4,000,000/- |
| If live telecast facilities are issued |
Rs. 600,000/- |
| If live telecast facilities are not used |
Rs. 50,000/- |
| Business of Gaming (casino) per place of business |
Rs.200, 000,000/- |
| Tax on gross collection on betting or gaming (after deducting winning prize) |
10% |
| However, no 10% tax is payable if the gross collection does not exceed one million rupees per month. |
Debt Repayment Levy
|
Description |
Rate |
| On the value addition attributable to the supply of financial services from every Financial Institution (All the licensed Commercial or Specialized Banks and licensed Finance Companies) |
7% of the Value Addition on Financial Services |
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