Sri Lanka: Income tax changes proposed in (Amendment) Bill 2022

Key changes proposed in (Amendment) Bill 2022 concern income tax changes

Key changes proposed in (Amendment) Bill 2022 concern income tax changes

The Inland Revenue (Amendment) Bill amending the law applicable on income tax was published in the gazette on 11 October 2022.

Key changes proposed in the Bill concern:

  • Individual income tax rates and relief thresholds
  • Advance individual (personal) income tax
  • Corporate income tax rates
    • Standard income tax rate
    • Concessionary tax rates removed
    • Capital gain tax for corporates
  • Deductibility of expenses in determining the assessable income
  • Advance income tax
  • Withholding tax on service payments
  • Final withholding payment
  • Tax rate for trust
  • Tax rate for unit trust or mutual funds, non-governmental organization
  • Introduction of exemptions
  • Withdrawal of exemptions
  • Segregation of tax accounts
  • Administrative review

Read an October 2022 report [PDF 308 KB] prepared by the KPMG member firm in Sri Lanka


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