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Social Security Contribution Levy (SSCL)
Social Security Contribution Levy (SSCL)
Social Security Contribution Levy (SSCL) has been imposed with effect from October 01, 2022 by the Social Security Contribution Levy Act, No. 25 of 2022. Every registered person shall account for the levy on an accrual basis.
Scope of liability
SSCL is payable by every taxable person (individual or entity includes a body of persons corporate or unincorporated, an executor, non- governmental organization and charitable institution) who:
- Imports any article
- Carries on the business of manufacture of any article
- Carries on the business of providing a service of any description
- Carries on the business of wholesale or retail sale of any article including importation and sale of such article (other than a sale by the manufacturer of that article being a manufacture to whom item no. 2. applies).
Turnover
Turnover has been defined in relation to respective category of persons to whom the SSCL Act is applicable, as follows:-
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With reference to importation of any article – The value of the article ascertained for the purpose of the Value Added Tax under section 6 of the Value Added Tax Act, No. 14 of 2002 but does not include the value of any exempted article referred to in Part 1A of the first schedule
-
With reference to business of manufacture of any article - The sum receivable whether received or not, in that quarter, of any article manufactured and sold in Sri Lanka other than any exempted article referred to in Part 1A of the first schedule.
-
With reference to providing a service of any description -
- The sum receivable whether received or not from the supply in Sri Lanka of any financial services by any person carrying on the business of supplying any financial services in Sri Lanka other than exempted services referred to in Part II of the first schedule as calculated by applying the attributable method specified in the Extra ordinary Gazette Notification issued under section 25C of the Value Added Act, No. 14 of 2002.
- Value of any services arising from the business of real estate and improvement ascertained under subsection (7) of section 5 of the Value Added Tax Act No. 14 of 2002 other than the exempted services referred to in Part II of the first schedule .
- Any service in Sri Lanka other than above a. and b. some receivable whether received or not from the provisions of services in Sri Lanka other than exempt services.
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With reference to business of wholesale or retail sale of any article including importation and sale of such article - The sum receivable whether received or not, in that quarter, from the wholesale or retail sale of any article in Sri Lanka other than any exempted article referred to in Part 1A of the first schedule
- Pharmaceuticals;
- Any article which is subject to the special Commodity Levy under the provisions of the Special Commodity Levy Act, No. 48 of 2007, where such article is sold by the importer of such article without any processing except for adaption for sale;
- Any article exported;
- Petrol, diesel or kerosene sold in a filling station;
- L. P. Gas;
- Fresh milk, green leaf, cinnamon or rubber (latex, crepe or sheet rubber) purchased from any local manufacturer or local producer.
The turnover for the relevant quarter of any taxable person shall not include;
- Any bad debt incurred by such person in that quarter,(if any bad debt recovered in any quarter, shall be included in the turnover of that relevant quarter)
- Any VAT paid (if registered)
- Any rebate paid under the Export Development Rebate in relation to any international event as approved by the Minister.
Registration Threshold
- Value of taxable supply of goods or services other than financial services by any person including whole sale and retail trade (with effect from 01.10.2022)
- Exceeds or likely to exceed the aggregate turnover Rs. 30,000,000/- for quarter commencing on or after 01.10.2022.
Chargeability
SSCL shall be charged from every taxable person for every quarter on or after October, 1, 2022 in respect of the liable turnover.
Rate
SSCL shall be charged at the rate of 2.5 per centum, in respect of the liable turnover in following manner;
|
1
|
Importation of any article |
100% of the turnover |
|
2
|
Manufacture of any article |
85% of the turnover |
|
3
|
Providing a service |
|
(a)
|
Supply of Financial Service |
100% of the value addition attributable to financial services referred to in the Gazette Notification issued under section 25C of the VAT Act. |
|
(b)
|
Land and improvements |
100% of the liable turnover {value of improvement ( Sale value – Market Value of the bare Land to the date of sale) referred to in subsection (7) of section 5 of the Value Added Tax Act, No. 14 of 2002) |
|
(c)
|
Service other than (a) and (b) |
100% of the turnover referred to in section 3(2)(c)(iii) of the Act
|
|
4
|
| Wholesale and retail sale |
|
(a)
|
Sale of any article by a registered distributor in relation to any manufacturer or producer of any goods in Sri Lanka |
25% of the turnover referred to in section 3(2)(d) of the Act |
|
(b)
|
Wholesale or retail sale other than item (a) above including importation and sale |
50% of the turnover referred to in section 3(2)(d) of the Act |
Payment of SSCL on Self-Assessment Basis
SSCL is payable on self-assessment basis in monthly. The due dates are as follows.
| Month |
Payment Date |
| For the first month of the quarter |
on or before the twentieth day of the second month of the relevant quarter |
| For the second month of the quarter |
on or before the twentieth day of the third month of the relevant quarter |
| For the third month of the quarter |
on or before the twentieth day of the month immediately succeeding the end of the relevant quarter |
Furnishing Social Security Levy (SSCL) Returns
Every registered person shall furnish to the Commissioner General a return in writing for every quarter on or before the twentieth day of the month after the end of each relevant quarter.
-
Due Date for Furnish Returns :
- On or before 20th day of the following month of the end of that relevant quarter.
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Submit to :
Reference
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