Sri Lanka proposes Budget for 2019
On 5 March 2019 Sri Lanka’s Government proposed its National Budget 2019 to the Parliament. The Budget includes following tax measures: -Income tax exemption for interest income accrued to a resident on sovereign bonds in foreign currency, as
See MorePakistan approves updating tax treaties with Sri Lanka, Nepal, France, Tunisia, Morocco, and Portugal
On 10 October 2017, the federal cabinet has granted approval to amend existing conventions on avoidance of double taxation treaties with Sri Lanka, Nepal, France, Portugal, Tunisia and Morocco for avoiding double taxation and the prevention of
See MoreSri Lanka: New income tax law 2017
On 7 September 2017, the Parliament of Sri Lanka has passed the new income tax law. Minister of Finance said all the provisions of the new income tax law will be implemented from the 1st of April 2018. Corporate Tax Rate: Beginning from 1 April
See MoreNegotiations for Sri Lanka-Singapore Free Trade Agreement (SLSFTA) Launched
On July 18, the governments of Singapore and Sri Lanka signed a statement on the opening of negotiations on a bilateral free trade agreement (FTA). The Free Trade Agreement (FTA) with Singapore would be beneficial to Sri Lanka because it would
See MoreSri Lanka: New law to revise TP penalties
According to new tax law Sri Lanka, corporate that violate transfer pricing (TP) rules can be fined up to 2% of the total amount of transactions between related parties. The new law also contains the provision to impose a penalty of up to 1% of the
See MoreFinland: Parliament ratified DTA with Sri Lanka
The Finnish Parliament on 16 December 2016 approved the double taxation agreement between Finland and Sri Lanka which was signed on 6 October 2016 in Colombo. The new treaty will be replaced by the existing Income and Capital Tax Treaty (1982)
See MoreFinland: Government submitted a bill to parliament for ratification of Finland- Sri Lanka DTA (2016)
The Finnish government submitted a bill to parliament on 10 November 2016 for ratification of the Finland- Sri Lanka Income Tax Treaty (2016), signed on 6 October 2016 in Colombo. The new treaty will be replaced by the existing Income and Capital
See MoreSri Lanka: Budget proposal 2017
On 10 November 2016, The Budget 2017 was presented to Parliament by the Minister of Finance Ravi Karunanayake. The main measures concerning corporate taxation are summarized below. Unless stated otherwise, the changes will take effect from 1 April
See MoreIMF comments on tax policy in Sri Lanka
On 23 September 2016 the IMF issued a press release following the conclusion of a staff visit to Sri Lanka to discuss the progress of the economic reform program. Sri Lanka’s economic performance in the first half of 2016 shows an improved
See MoreIMF report comments on economic and fiscal policy of Sri Lanka
On 14 June 2016 the IMF issued a report following the completion of consultations with Sri Lanka under Article IV of the IMF’s articles of agreement. GDP growth was 4.8% in 2015, generally unchanged from 2014. The economy is however facing an
See MoreIMF report comments on tax policy of Sri Lanka
On 5 February 2016 the IMF released a report following the conclusion of discussions by its staff in Sri Lanka under Article IV of the IMF’s articles of agreement. The Sri Lankan economy has been performing positively and real GDP growth was 5.2%
See MoreSri Lanka: Proposals on corporate and individual tax rates in Budget 2016
Recently the Sri Lankan Inland Revenue Department (IRD) announced that the proposals made in Budget 2016 regarding corporate and individual tax rates. Main corporate income tax rate: As per the proposed revised Budget for 2016, a 28% tax rate will
See MoreSri Lanka: World Bank study highlights low tax collection
The World Bank published a Systematic Country Diagnostic on Sri Lanka on 1 February 2016. This looks at the key obstacles to sustained progress in ending poverty and increasing prosperity. The study identifies the low tax to GDP ratio as an
See MoreIMF report comments on tax policy of Sri Lanka
On 5 February 2016 the IMF released a report on the conclusion of discussions by its staff in Sri Lanka under Article IV of the IMF’s articles of association. The Sri Lankan economy has been performing positively and real GDP growth was 5.2% in
See MoreSri Lanka: Tax proposals in National Budget 2016
The Finance Minister of Sri Lanka has presented the national budget 2016 on 20 November 2015. The Budget includes some changes related to the corporate income tax rate structure, several tax incentives for selected industries, the Economic Service
See MoreSri Lanka: Commissioner General of Inland Revenue publishes gazette on Transfer Pricing Regulations
The Commissioner General of Inland Revenue has published gazette no. 1907/26 dated 25 March 2015 on Transfer Pricing Regulations. It was made available on the Government Printer’s website on 27 May 2015. The gazette requires the taxpayer to
See MoreSri Lanka: IMF comments on economic and fiscal policy
The IMF has concluded the third Post Program Monitoring discussion with Sri Lanka and issued a press release on 5 May 2015 summarizing its findings. Sri Lanka’s GDP growth was 7.4% in2014 and is estimated to be 6.5% in 2015 and later years.
See MoreIraq: Income Tax Treaties with Hungary, Sri Lanka, and Turkey
Draft income tax treaties with Hungary, Sri Lanka and Turkey have been approved by the Iraqi cabinet. The treaties will enter into force after they have been signed and ratified by the contracting
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