Just released:

The 2025 KPMG US CEO Outlook – learn what’s shaping CEO decision making

Get the report
Just released:

The 2025 KPMG US CEO Outlook – learn what’s shaping CEO decision making

Get the report

Sri Lanka: Legislation introducing various income tax changes enacted

The KPMG member firm in Australia has summarized and analyzed the budget announcements and its implications for various sectors and businesses.

Share
March 25, 2025

Legislation introducing the following income tax changes that was published on February 21, 2025 (read TaxNewsFlash), was enacted as the Inland Revenue (Amendment) Act No. 02 2025, certified by the Speaker on March 20, 2025, and will become effective April 1, 2025:

  • Introduction of concessionary corporate income tax rate of 15% on foreign service providers
  • Increase in corporate income tax (CIT) rate from 40% to 45% on gains and profits from betting and gaming, manufacture and sale or import of any liquor or tobacco products
  • Increase in rate of advance income tax (AIT) on interest from 5% to 10%
  • Reduction in time period to claim income tax refund or credit to 30 months
  • Various individual (personal) income tax changes

Read a March 2025 report prepared by the KPMG member firm in Sri Lanka

Thank you!

Thank you for contacting KPMG. We will respond to you as soon as possible.

Contact KPMG

Use this form to submit general inquiries to KPMG. We will respond to you as soon as possible.

By submitting, you agree that KPMG LLP may process any personal information you provide pursuant to KPMG LLP's . Privacy Statement

An error occurred. Please contact customer support.

Job seekers

Visit our careers section or search our jobs database.

Submit RFP

Use the RFP submission form to detail the services KPMG can help assist you with.

Office locations

International hotline

You can confidentially report concerns to the KPMG International hotline

Press contacts

Do you need to speak with our Press Office? Here's how to get in touch.

Headline