Type of Taxes >> Nation Building Tax (NBT)


Nation Building Tax (NBT)

Nation Building Tax (NBT) Bill giving legal effect to the 2009 Budget Proposals relating to the imposition of Nation Building Tax (NBT) was passed by parliament on January 7, 2009. NBT Tax Act No. 9 came into operation with effect from February 1st 2009.

Scope
NBT is payable by every person ( individual, company, body of persons) or partnership who :

imports any article (other than any article in the personal baggage) into Sri Lanka or

carries on the business of manufacture of any article or

carries on the business of providing a service of any description.

Chargeability
Every liable person whose, liable turnover for any quarter exceeds Rs. 650,000/= should be registered with the Nation Building Tax (NBT) unit of the Department of Inland Revenue.

Registration for NBT

1.Every person who;

          import any article into Sri Lanka;
          carries on the business of manufacture of any article;
          carries on the business of providing a service of any description.

is liable to pay Nation Building Tax, if their turnover exceeds Rs.650,000/- for a quarter.

2. Every liable person should be registered for N.B.T. and the relevant applications can be obtained from the following
    branches. Duly filled applications to be handed over to the NBT Unit


          NBT Unit, 12th Floor, Inland Revenue Department, Chittampalam A. Gardiner Mawatha, Colombo 02.
          TaxPayers Service Unit, 1st Floor, Inland Revenue Department, Chittampalam A. Gardiner Mawatha, Colombo 02.
          Every regional office.

3. As this tax is administered through the main computer system of the Inland Revenue Department, every person must
    have a TaxPayer Identification Number (TIN). TaxPayer Identification number can be obtained from Tax Payers
    Services Unit.

4. The persons involved in a business of import and sales, are not necessary to be registered at the Inland Revenue
    Department. They have to pay NBT to the Custom Department at the point of import.

Issuing and Receiving of Returns

1. NBT returns to be furnished on or before 20th of the month immediately succeeding the end of that relevant quarter.
    (Returns to be furnished quarterly basis)


2. Data printed returns are sent by post through Data Processing Unit.

3. Returns to be furnished to the NBT Unit, 12th Floor, Inland Revenue Department, Chittampalam A. Gardiner Mawatha, Colombo 02.

Payments of Nation Building Tax (NBT)

1. NBT is payable by every liable person on a self assessment basis in three installments for any relevant quarter in
    following manner.


          First Payment an amount equivalent to one third of the tax payable for that relevant quarter on or before the
             20th day of the second month of that relevant quarter.
          Second Payment an amount equivalent to one third of the tax payable for that relevant quarter on or before
             the 20th day of the third month of that relevant quarter.
          Third (Final) Payment an amount equivalent to the balance of the tax payable for that relevant quarter on or
             before the 20th day of the month immediately succeeding the end of that relevant quarter.

2. For the purpose of determining the value of an installment, the liable turnover of the relevant quarter to be
    estimated, base on the turnover of the particular quarter of the previous year or the turnover of the 1st month of
    that quarter, and the tax is to be calculated applying the correct rate and 1/3 of it to be paid as an installment.


3. Remittance forms are sent by post through the Data Processing Unit. (TaxPayers are requested to mention the
    correct period code in remittance slip when the payments are made. Ex. 1st installment of 3rd quarter 2009 09091)

4. NBT can be paid to any branch of Bank of Ceylon which facilitate the payment of VAT.

Rates
1% on the liable turnover from 1/2/2009 to 30/4/2009; and

3% on the liable turnover with effect from 1/5/2009

The Nation Building Tax (NBT) rate applicable to turnover from the sale of rice manufactured from locally procured paddy is reduced from 3% to 1.5% from 01/07/2009.

Liable Turnover
In the case of importer; the value of any article ascertained under section 6 of the Value Added Tax Act for the
      purpose of importation.

In the case of manufacturer; the proceeds receivable whether received or not from the manufacture and sale in
     Sri Lanka.

In the case of service provider; the proceeds receivable whether received or not.

Bad debts, VAT and Excise Duty should not include to the liable turnover.

Credit for NBT
Only a manufacturer is entitle for a credit of NBT paid by him and even it should be in respect of any article imported by him, or purchased by him from another NBT registered manufactured and also such article should have been used exclusively in his business of manufacture.

A service provider is not entitling for any credit for NBT paid by him.

If there is any balance can be carried forward to be set off against the NBT payable in the subsequent quarter. However, there are no refunds of NBT to any registered person.

Exemptions:
There is a great deal of articles and services which are not liable to tax.

Nation Building Tax (NBT) Act, No.9 of 2009 [Sinhala | Tamil | English ]
[Certified on 11th March, 2009]

Nation Building Tax (NBT) (Amendment) Act No.32 of 2009 [ Sinhala | Tamil | English ]
[Certified on 18th May, 2009]

Nation Building Tax (NBT) (Amendment) Act No.10 of 2011 [ Sinhala | Tamil | English ]
[Certified on 31st March, 2011]

Consolidated Text of the Nation Building Tax (NBT) Act, No.9 of 2009 [ English ]
  Incorporating Amendments up to 31.03.2011


More Details
Nation Building Tax Unit - 2338721
Tax Payer Service Unit - 2328702
Secretariat Unit - 2338635


Privacy | Copyright 2009-2011 | Disclaimer | Feedback | Site Map | Contact Us
Department of Inland Revenue, Sri Lanka, Chittampalam A. Gardiner Mawatha, Colombo 02.
Best viewed @ 1024X 768 resolution or above.

2009-2011, All rights reserved by Inland Revenue Department - Sri Lanka