2022

  • December 31st 2022 - Circular No SEC_2022_E_06 dated 23 December 2022 issued by the Department of Inland Revenue on Requirement of Tax Clearance for Foreign Outward Remittances and related Procedure with effect from 01 January 2023. 
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  • December 29th 2022 - Circular No SEC/2022/E/03 dated 23 December 2022 issued by the Department of Inland Revenue to the Withholding Agents on the deduction of Withholding Tax & Advance Income Tax with effect from 01 January 2023. 
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  • December 26th 2022 - The Department of Inland Revenue has issued the Advance Personal Income Tax (APIT) Tables applicable for the period 01 January 2023 to 31 March 2023.
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  • December 26th 2022 - Circular No SEC/2022/E/02 dated 20 December 2022 issued by the Department of Inland Revenue for the Banks and Financial Institutions on the deduction of Advance Income Tax on Interest or Discount on Deposits with effect from 01 January 2023. 
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  • December 21st 2022 - The Inland Revenue (Amendment) Act No 45 of 2022 was certified by the Speaker on 19thDecember 2022. The Act will come into operation with effect from specific dates referred to under specific sections.
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  • December 16th 2022 - The Value Added Tax (Amendment) Act No 44 of 2022 was certified by the Speaker on 14 December 2022.  The Act will come into operation with effect from specific dates referred to under specific sections.
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  • November 21st 2022 - The Supreme Court (SC) Special Determinations under Article 120 and 121 of the Constitution in relation to the Inland Revenue (Amendment) Bill and Value Added Tax (Amendment) Bill have been issued and the Determinations impact the effective date of the amendments proposed in the Bills. We have tabulated below the effective dates that were provided in the respective two Bills and the new effective dates in the proposed Committee Stage Amendments set out in the SC Special Determinations. 
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  • October 12th 2022 - The Inland Revenue (Amendment) Bill amending the Law applicable on Income Tax was published in the Gazette issued on 11 October 2022. This tax alert provides a snapshot of key Income Tax changes proposed in the Bill. 
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  • October 11th 2022 - It was proposed in the Interim Budget 2022 to increase the rate of VAT on the import and/or supply of goods or supply of services to 15% from 01 September 2022. Attached notifications published in the websites of Ministry of Finance and Department of Inland Revenue in relation to the increase of the VAT rate. 
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  • September 21st 2022 - The Social Security Contribution Levy (SSCL) Act No 25 of 2022 was certified by the Speaker on 20 September 2022. 
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  • August 31st 2022 - It was proposed in the Interim Budget 2022 to increase the rate of VAT on the import and/or supply of goods or supply of services to 15% from 01 September 2022. Attached notifications published in the websites of Ministry of Finance and Department of Inland Revenue in relation to the increase of the VAT rate. 
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  • July 05th 2022 - The Circular No: SEC/2022/E/01 on the extension of time for payment of Income Tax was published by the Inland Revenue Department on 27 June 2022. The Circular sets out the procedure for any person who wishes to apply for the extension of time of payment of income tax under Section 151 Inland Revenue Act, No. 24 of 2017 (IRA).
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  • June 23rd 2022 - The Bill governing the imposition and administration of the Social Security Contribution Levy (SSCL) was published in the Gazette on 21 June 2022. The SSCL is a new tax proposed in the Budget 2022.
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  • June 01st 2022 - Value Added Tax increased revisions in effect from June 01, 2022.
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  • April 08th 2022 - The Surcharge Tax Act No 14 of 2022 (Act) was certified by the Speaker and published as a Supplement to Part II of the Gazette of the Democratic Socialist Republic of Sri Lanka on 08 April 2022.
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  • February 18th 2022 - The Bill published in the Gazette on 22 November 2021 to amend the Provincial Councils (Transfer of Stamp Duty) Act No.13 of 2011 was passed into law on 17 February 2022 with the title Provincial Councils (Transfer of Stamp Duty) (Amendment) Act, No. 6 of 2022.
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  • February 08th 2022 - The Bill governing the imposition and administration of the Surcharge Tax was published in the Gazette on 07 February 2022.  The Surcharge Tax was proposed in the Budget 2022, as a one-time tax. 
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  • February 03rd 2022 - We enclose herewith the Gazette notification No. 2258/18 dated 14 December 2021 issued by the Inland Revenue Department on 1st February 2022 under the Sixth Schedule, Paragraph 10 (2) (c) and (e) of the Inland Revenue Act, No. 24 of 2017 amended by the Inland Revenue (Amendment) Act, No. 10 of 2021 (the IRA).
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2021

  • July 19th 2021 - The Department of Government Printing has uploaded Gazette Extraordinary No. 2217/7 dated 2nd March 2021 issued under the Inland Revenue Act No. 24 of 2017 (the Act), which would be effective from 1 April 2020. 
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  • May 13th 2021 -The Inland Revenue (Amendment) Act No. 10 of 2021 was passed in Parliament and certified by the Speaker on 13th May 2021. Below document is a synopsis of the key changes proposed via the Amendment Act, compared to the Bill published previously.
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  • May 13th 2021 - The Value Added Tax (Amendment) Act No. 9 of 2021 was passed in Parliament and certified by the Speaker on 13th May 2021. Below document is a synopsis of the key changes proposed via the Amendment Act compared to the Bill published previously.
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  • April 9th 2021 - The Bill to amend the Inland Revenue Act No. 24 of 2017 has been published. 
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  • April 9th 2021 - The Bill to amend the Value Added Tax Act No. 14 of 2002 has been published.
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  • January 13th 2021 - The Department of Inland Revenue (“DIR”) has issued the attached notice indicating the proposed amendments to the Inland Revenue Act No. 24 of 2017 (“IR Act”) to be implemented by them post formal amendments to the IR Act.
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2020

  • December 23rd 2020 - The Department of Inland Revenue (“DIR”) has informed all tax payers that due to the prevailing situation in the country consequent to the outbreak of COVID-19, a further extension has been granted until 31st January 2021 for filing the Annual Statement of Employer (PAYE Tax) and Annual Statement of Withholding Tax for the Year of Assessment 2019/2020.
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  • November 3rd 2020 - The Department of Inland Revenue (“DIR”) has informed all tax payers that due to the prevailing situation in the country consequent to the outbreak of COVID-19, an extension has been granted until 28th February 2021 for filing the Return of Income for the Year of Assessment 2019/2020.
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  • August 11th 2020 - The Department of Inland Revenue (“DIR”) has published a notice stating that with effect from 1st April 2020, it is mandatory for employers to deduct tax under the Advance Personal Income Tax (“APIT”) Scheme, on payment of remuneration to employees who are resident non-citizens of Sri Lanka. Such tax deducted has to be remitted to the DIR by 15th August 2020. Previously, APIT was compulsory for non-resident employees only.
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  • June 26th 2020 - An update on the decisions taken by the Cabinet of Ministers on the 24th of June 2020 for granting tax relief to Small and Medium Scale Entrepreneurs who have been adversely impacted due to COVID-19.
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  • May 18th 2020 - An update on the recent notices issued by the Department of Inland Revenue in relation to an extension granted for submission of the Statement of Estimated Tax Payable for the year of assessment 2019/2020, extension for remittance of taxes withheld on terminal benefits, instructions for collection of credit voucher books by Registered Identified Purchasers (“RIPs”) under the SVAT Scheme and further guidelines for making online tax payments.
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  • May 5th 2020 - An update on the recent notices issued by the Department of Inland Revenue providing instructions to be followed by taxpayers in computing income tax payable and making tax payments for the year of assessment 2019/2020.
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  • April 30th 2020 - An update on the recent notice issued by the Department of Inland Revenue granting a further extension of the validity periods for VAT deferment facility related letters and Temporary VAT registration, and the updated notice issued in relation to online tax payments.
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  • April 27th 2020 - An update on the revised notice issued by the Department of Inland Revenue in relation to deduction of tax on cumulative income earned from employment by employees for the period 1st January 2020 to 31st March 2020, under the PAYE Scheme. 
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  • April 22nd 2020 - An update on the notice issued by the Department of Inland Revenue, in relation to extension of deadlines for submission of tax returns/ statements/ forms.
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  • April 22nd 2020 - An update on the notice and tax tables issued by the Department of Inland Revenue, in relation to deduction of Advance Personal Income Tax from remuneration paid to employees.
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  • April 20th 2020 - An update on the notice issued by the Department of Inland Revenue informing the extension of deadline for making appeals to the Tax Appeals Commission and providing directions to taxpayers for lodging such appeals via email.
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