Sri Lanka: Unveiling Tax Rates for Assessment Year 2023-2024

The Sri Lankan Inland Revenue unveiled an extensive array of tax rates pertinent for the assessment year 2023-2024.

These updates cover several crucial areas:

1. Reliefs and Terminal Benefits:

   • Details on available reliefs for residents and nonresidents.
   • Taxation on terminal benefits from employment.

2. Company Taxes and Investment Gains:

   • Establishment of a 30% tax rate for companies’ taxable income.
   • Taxation of gains from the realization of investment assets.

3. Remittance Tax for Nonresidents:

   • Introduction of a 14% remittance tax rate for nonresidents.

4. Tax Rates for Various Entities:

   • Specific tax rates for partnerships, mutual funds, employee trust funds, pension funds, and termination funds.

5. Withholding and Advance Income Tax:

   • Outline of withholding tax rates and advance income tax rates effective from January 1, 2023.
   • Emphasis on employers’ obligation to remit advance personal income tax (APIT) by deducting it from employees’ remuneration.

6. VAT and Social Security Contribution Levy (SSCL):

   • Specification of an 18% standard VAT rate effective from January 1, 2024.
   • Introduction of a 2.5% rate for the social security contribution levy (SSCL).

Source: gov.lk

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