Sri Lanka proposes VAT and income tax reforms
Sri Lanka has announced a series of tax reforms through proposed legislation published on 21 February 2025. The changes, affecting VAT and income tax, will be implemented in phases from April 2025. A key measure is the introduction of an 18% VAT
See More
Sri Lanka: 2025 budget pledges reforms largely aligned with conditions set out in IMF bailout
Anura Kumara Dissanayake, Sri Lankan President and Finance Minister, presented the 2025 budget to the Parliament on 17 February 2025, introducing various tax and legal reforms to advance the new government’s policy agenda. These reforms are key to
See More
Sri Lanka, UAE sign IPA agreement
Sri Lanka and UAE have reached an agreement on investment protection (IPA) agreement during the World Governments Summit in Dubai. This announcement was made by the Sri Lankan President's media division on 13 February 2025. The agreement was
See More
Sri Lanka: 2025 Budget expected to lower income taxes, secure IMF bailout
Sri Lanka's President Anura Kumara Dissanayake, who is also the nation’s finance minister, is expected to present the state budget for 2025 on Monday, 17 February 2025. A key focus of the budget is to ease the vehicle import duties, which is
See More
Sri Lanka: Inland Revenue issues guidelines for obtaining tax residency certificates
The Sri Lanka Inland Revenue has issued a notice outlining the steps taxpayers must follow to obtain tax residency certificates. This notice was published by Sri Lanka Inland Revenue on 29 January 2025. INLAND REVENUE DEPARTMENT NOTICE TO
See More
Sri Lanka, UAE finalise investment protection agreement
Sri Lanka and UAE have finalised an agreement on reciprocal promotion and protection of investments between the two countries. This announcement was made by the Ministry of Foreign Affairs, Foreign Employment and Tourism on 3 February 2024. The
See More
Sri Lanka publishes new Advance Pricing Agreements guide
The Inland Revenue Department of Sri Lanka has announced the release of a new guide on Advanced Pricing Agreements (APAs) on 6 January 2025. This guide provides an overview of the APA process in Sri Lanka, including detailed steps, documentation
See More
Sri Lanka introduces new tax clearance rules for outward remittances
Sri Lanka’s Inland Revenue Department has implemented new rules on withholding tax and tax clearance certificates for payments to non-residents, effective from 1 January 2025. The regulations apply to withholding agents and financial institutions
See More
India, Sri Lanka sign amending protocol to tax treaty
India and Sri Lanka signed an amending protocol to their 2013 income tax treaty on 16 December 2024. This marks the first revision to the agreement, which will come into force after the exchange of ratification instruments. The treaty was
See More
Sri Lanka: President presents tax reform proposals to parliament
The President of Sri Lanka presented a series of tax reform proposals to Parliament on 18 December 2024, with several changes set to take effect in 2025. One of the key changes is a revision to the personal income tax structure, effective 1 April
See More
Sri Lanka: IRD launches e-services for 2023/24 tax returns
The Sri Lanka Inland Revenue Department (IRD) has announced the launch of its "e-services" platform for the electronic filing of annual tax returns for the assessment year 2023/2024. Taxpayers must submit their returns electronically by 30 November
See More
Czech Republic, Sri Lanka income tax treaty enters into force
The income tax treaty between the Czech Republic and Sri Lanka entered into force on 16 October 2024. The announcement was made by the Czech Ministry of Finance on 15 October 2024. Both countries apply the credit method for the elimination of
See More
Sri Lanka to sign first income tax treaty with Austria
At a press briefing on Cabinet decisions from 2 September 2024, Sri Lanka's Cabinet announced its approval for signing an income tax treaty with Austria. According to the convention, Sri Lanka will be taxed at a rate not exceeding 10% of the
See More
Sri Lanka releases estimated income tax statement for 2024-25
The Sri Lanka Inland Revenue Department (IRD) has released the Statement of Estimated Income Tax Payable for the year of assessment 2024/2025. It also issued the Statement of Estimated Tax (SET) - Credit Schedule and the Instructions for completing
See More
Sri Lanka, Maldives to sign tax treaty
Officials from Sri Lanka and the Maldives met to discuss strengthening bilateral relations and cooperation, including the signing of an income tax treaty, on 6 June 2024. This follows after the Maldives ' Minister of Foreign Affairs, Moosa
See More
Sri Lanka publishes guidance on tax residency certificates
On 1 April 2024, the Sri Lanka Inland Revenue Department (IRD) issued a notice to taxpayers outlining the necessary procedures to secure a tax residence certificate (TRC). The requirements include: a) A request for TRC should be made to the
See More
IMF Report Comments on the Sri Lankan Economy
On 19 January 2024 the IMF issued a report following discussions with Sri Lanka. The report notes that the economic reform program implemented by Sri Lanka is helping economic recovery with positive real GDP growth in the third quarter of 2023,
See More
Sri Lanka releases circular on VAT registration for exempt goods and services
On 4 January 2024, Sri Lanka’s Inland Revenue Department (IRD) published Circular No. SEC/2024/E/01 announcing the VAT registration requirements for suppliers of rubber, tea, and coconut products. As per the amendments made to the Value Added
See More