The  Inland Revenue Act, No. 10 of 2006  is more or less a consolidation of the Inland Revenue Act, No. 38 of 2000 and the six amendments made thereto but with those provisions (subject to a few exceptions) which are not applicable to any year of assessment commencing on or after April 1, 2006 have been deleted there from. It also incorporates provisions designed to give legal effect to the income tax proposals announced in the Budget 2006.

The provisions of the Act, (with a few exceptions) apply only to any year of assessment commencing on or after April 1, 2006.

 

Tax if not managed efficiently and accurately it can represent a substantial outflow of funds from any business or individual. Be it may be a merger or acquisition, amalgamation or liquidation of a company, sale or purchase of property commercial or otherwise involve taxes and penalties for non-compliance.

Business turnover tax BTT

Business Turnover Tax All businesses engaged in buying and selling of articles and commodities other than exempted items are liable [ More.. ]

Debit tax

Debits Tax shall be charged (i) On the total amount of the debits, made during [ More.. ]

Dividend tax

Tax is payable on Total amount of Interest received from any Bank deposit and amount of interest on loan granted by a Company, Partnership or other body of person outside Sri Lanka [ More.. ]

Economic service charge

Requirement An Economic Service Charge shall be charged from every person and partnership, if aggregate turnover from trade, business, profession or vocation carried on or exercised in Sri Lanka whether directly or through an agent or more than one agent, exceed ten million rupees for that relevant quarter of every year of assessment [ More.. ]

Income tax

Requirement by law .Any person who carries on any trade, business, profession or vocation, including any company which has been entered in to any agreement with the Board of Investment, shall obtain a registration number within one year of such Registration or incorporation or commencement of the activity as the case may be, from the CGIR and furnish Return of income before 30th September following the end of each year of assessment. Further Tax Registration certificate (TN) shall be attached to your Annual Return which furnishes to the Registrar of Companies in every year [ More.. ]

Levies

Social Responsibility Levy (SRL) is imposed under Finance Act and a levy of 1% (from 1.4.2006 on income tax) on taxes and levies chargeable under following statue [ More.. ]

Treaties and Conventions

Sri Lanka has signed and ratified double tax relief treaties with Australia, Bangladesh, Belgium, Canada, China, Denmark, Egypt, France, Finland, Germany, Hong Kong, India, Italy, Indonesia, Iran, Japan, Jordan, The Republic of Korea, Kuwait, Malaysia, Mauritius, Nepal, The etherlands, Norway, Oman, Pakistan, Poland, The Philippines, Romania, Russia, Saudi Arabia, Singapore, Sweden, Switzerland, Thailand, The United Kingdom, The United Arab, The United States of America, Emirates, Yugoslavia. [ More.. ]

Value added tax VAT

Every person carries on or carries out any taxable activity in Sri Lanka shall be required to be registered if, Taxable supply of goods and services in any taxable period of one month or three months, as the case may be, has exceeded five hundred thousand rupees or has exceeded Rs. one million eight hundred thousand rupees in twelve months period [ More.. ]

Withholding Tax On Interest On Deposits

Company and Partnership Business Rate 10% Individual - If Declaration is made Assessable Income (Rs) Rate 0 - 300,000.00 [ More.. ]