Accsolutz

26/12/2021

Wishing you and your family a wonderful Christmas and a blessed New Year All.

13/04/2021

The film industry is exempt from the entertainment tax for two years

The relevant ministries approved the exemption of the film industry from the entertainment tax for a period of two years in order to protect local cinema in the face of Covid-19.

For the two years 2021-2022, the film industry will be exempted from the entertainment tax, affecting the entire island.

Previously, the entertainment tax was levied at the rate of 5% to 25% by the relevant local authorities.

05/04/2021

04/11/2020

28/09/2020

As you are aware final tax payment for the Y/A 2019/2020 is due on 30th September 2020. Accordingly all tax liable persons should make their final income tax payment on or before 30th September 2020.

Penal provisions

* If all or part of a tax due for a tax period is not paid within 14 days of the due date such person shall be liable to a penalty equal to 10% of the amount of tax due but not paid (Sec.179)

* Additionally 1.5% interest per month should be paid on default amount (Sec.157)

Ex: If a final tax payment of a person is Rs.300,000 and the payment was not made by 30th September and made it on 30th November 2020.His penalty and interest charges will be (Rs.300,000*10%+Rs.300,000*1.5%*2)=Rs.39,000

18/02/2020

WHT on service fees payable to any resident Individuals which was levied at 5% on amounts exceeding LKR 50,000 has been removed with effect from January 01, 2020.

08/02/2020

As instructed by the Ministry of Finance on January 31, 2020 pending formal amendment to the Inland Revenue Act No. 24 of 2017 PAYE on any employment receipts to any resident or non-resident individual is removed with effect from January 01, 2020.

PAYE already deducted after January 01, 2020 on employment receipts should be paid back to the respective persons.

29/11/2019

18/01/2019

The Department of Motor Traffic (DMT) while exempting electric cars, imposed a Carbon Tax on fossil-fuelled vehicles including petrol cars from January 1.