Sri Lanka: Cabinet reapproves income tax treaty with Austria
Sri Lanka’s Cabinet has reapproved the signing of its first income tax treaty with Austria, requiring signature and ratification to take effect. Sri Lanka’s Cabinet reapproved the signing of an income tax treaty with Austria on 7 July 2025,
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Sri Lanka: Parliament approves protocol to 2013 tax treaty with India
The Sri Lankan Parliament approved the amending protocol to its 2013 income tax treaty with India on 2 July 2025, following its signing on 16 December 2024. The Parliament of Sri Lanka approved the protocol to the 2013 income tax treaty with
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Sri Lanka to introduce 18% VAT on cross-border digital services
Sri Lanka will implement an 18% VAT on foreign digital services supplied to local consumers starting October 2025. Sri Lanka will implement an 18% Value Added Tax (VAT) on digital services supplied by non-resident companies to local consumers,
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Sri Lanka, Vietnam to revise tax and investment treaties
Any resulting protocol will mark the first updates since their original agreements from 2005 and 2009. Sri Lanka and Vietnam have agreed to update their 2005 income tax treaty and 2009 Sri Lanka-Vietnam Investment Protection Agreement on 5 May
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Sri Lanka issues notice on VAT amendments
The Sri Lanka Inland Revenue Department released a public notice regarding the Value Added Tax (Amendment) Act No. 04 of 2025 on 17 April 2025. The Act was officially enacted on 11 April 2025. Notice to the Taxpayers Amendments to the Value
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Sri Lanka issues guidance on AIT relief for low-income interest earners
Sri Lanka’s Inland Revenue Department released Circular No. SEC/2025/E/03 on 28 March 2025, outlining procedures for resident individuals to claim relief from Advance Income Tax (AIT) on interest income. Residents earning interest from banks or
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Sri Lanka enacts income tax reforms Act
The Sri Lanka Inland Revenue Department (IRD) has released details of the Inland Revenue (Amendment) Act, No. 2 of 2025. Certified on 20 March 2025, the new tax regulations take effect from 1 April 2025. Key changes include: Higher tax-free
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Latvia, Sri Lanka end tax treaty talks
Latvia and Sri Lanka have ended the negotiations by initiating an income tax treaty on 25 February 2025. This is the first-ever treaty between the two countries, and it aims to prevent tax evasion, boost tax cooperation and eliminate double
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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