Tax Chart - Year of Assessment 2014/2015

Individual Income Tax​ Tax free allowance for residents/non - resident citizens of Sri Lanka is Rs. 500,000/- Additional allowance by way of qualifying payment (maximu​​m) of Rs.100, 000 is granted on employment income. Taxable Inco​me Rate First Rs. 500,000/- 4% Next Rs. 500,000/- 8% Next Rs. 500,000/- 12% Next Rs. 500,000/- 16% Next Rs. 1, 000,000/- 20% On Balance 24% Tax rates for Professionals (providing professional services) Taxable Income Maximum %​ ​​Does not exceed Rs. 25Mn 12% Exceeds Rs. 25Mn but not exceeds Rs. 35Mn 14% Exceeds Rs. 35Mn 16% Tax on Terminal Benefits from Employment Terminal Benefits Rate Paid under uniformly applicable scheme On the first Rs. 5Mn​ of the aggregate sum where the period of services or contribution is not less than 20 years Exempt On the first Rs. 2Mn of the aggregate sum where the period of services or contribution is less than 20 years​ Exempt On the next Rs. 1,000,000 5% On the balance 10% Paid under non- uniformly applicable basis Compensation for loss of office or employment normal rates (subject to maximum rate) 16% Exemption on compensation for loss of office Under a Voluntary Retirement Scheme uniformly applicable to all the employees (in the opinion of CGIR) ; or Up to Rs 2 Mn Under a Retrenchm​ent Scheme approved by the Labour Commissioner Up to Rs 2 Mn Employment Income from Government Service – Tax is deductible under PAYE Scheme and such tax is final unless there are other source of Income Liable to tax, (except for dividends and interest from which withholding tax has been deducted).​ Corporate Income Tax​ Standard Rates​  Rates All companies (Other than companies taxed at special rates) Not dealing in Liquor and Tobacco​ 28% Dealing in Liquor and Tobacco 40% Dividend Tax 10% Deemed Dividend Tax 15% Dividend Distributed out of dividends received out of Sri Lanka (if re-distributed within three months of receipt) Exempt Remittance tax on non-resident companies 10% Relocating International headquarters in Sri Lanka Exempt Royalty on International property earned in foreign currency Exempt Speci​al Rates​ Rate Manufactures and service providers with turnover less than Rs. 500Mn for that year of assessment (section 59B) 12% Supply of services to exporters of goods or services to foreign principal 12% Listed company with not less than 20% of share issue to the public (if corporate tax rate 28% or more) ½ of the tax rate Tax Rates Applicable on Certain Persons (The rate schedule provides all the rates including higher rates on specific areas and concessionary rates) Venture Capital Companies 12% Any company of which the Taxable Income does not exceed Rs. 5,000,000 (not a Holding Company, a Subsidiary Company, or an Associate Company of a group of companies) 12% Clubs and Associations 10% Profits and Income from Off-shore foreign currency transaction of any Foreign Currency Banking Unit (FCBU) if the Taxable Income exceeds LKR 5,000,000 28% if the Taxable Income does not exceed LKR 5,000,000 12% Person other than a company, engaged in Agriculture, Manufacture of animal feed, Promotion of Tourism, or Construction works (maximum) 12% Company engaged in Agriculture, Manufacture of animal feed, Promotion of Tourism, or Construction works 12% Specialized Housing Banks if the Taxable Income exceeds LKR 5,000,000 28% if the Taxable Income does not exceed LKR 5,000,000 12% Qualified Export Profits (maximum) 12% Non-citizen Entertainer or Artiste 12% Profits and Income from Petroleum exploration of any Person or Partner of a Partnership 12% Non-Governmental Organizations 28% Undertaking carried on in Sri Lanka for operation and maintenance of storage facilities, Development of Software Individuals (maximum) 10% Companies 10% Educational Services provided by Individuals (maximum) 10% Companies 10% Profits and iIncome of any agricultural undertaking (unprocessed or primary process) referred to in section 16 of the Act 10% The rate of Income Tax applicable to any partnership on divisible profits and other income, (other than on any assessment made) 8% Such part of the profits and income of any person from any undertaking for the manufacture of any product for export, or for supply to an exporter for export, being a product having domestic value addition in excess of sixty five per centum and Sri Lankan brand name with patent rights reserved in Sri Lanka (maximum) 10% Provided Funds, Charities (all) 10% Any Unit Trust or Mutual Fund & Unit Trust management company 10% Hindu undivided families 24% Executor (other than trustees under last wills) and receivers (other than liquidators) 24% Trustees (including trustees under last wills) 24% Partnerships (on any assessments made) 24% Business undertakings vested in the Government under the Business Undertakings (Acquisition) Act No. 35 of 1971 On the Taxable Income 28% On the balance of the profits after deduction there from of the tax payable under paragraph (i) 25% Employees Trust Fund and Provident or Pension Funds 10% Any thrift, saving or building society or welfare fund to which contributions are made by employees only or any gratuity funds approved for the purpose of section 25 (1) (o) 10% Persons (other than those referred to above a​nd in the First and the Second Schedules) 28% Rate of deduction or income tax from interest, rent, ground rent, royalty or annuity paid or credited to any person or partnership out of Sri Lanka (section 95) 20% The rate of Income Tax on profits and income from off-shore foreign currency transaction of any foreign currency banking unit (section 41) 20% Withholding Taxes Description Rate Interest on compensation on vested properties by the government 10% Interest on certain deposit schemes approved by the CGIR 10% Interest on Bank deposits If the interest is paid or credited- to a company 10% to an individual, a Partnership, or charitable institution 2.50% Interest or discount on corporate debt security 10% Treasury Bills, Treasury Bonds, etc. (only in the hand of the primary dealers) 10% Government rewards or shares of fines 10% Lottery prizes in excess of Rs. 500,000/- 10% Winning from betting or gambling 10% Annuities and Royalties 10% On remuneration / benefit paid to Directors / Chairperson / Board of Directors or an individual having more than one employment or aggregate of such amount If monthly benefits does not exceed Rs. 25,000/- per month 10% If exceed Rs. 25,000/- per month (other than Public Sector E​mployees) 16% Public Sector Employees - Up to Rs 50,000 per month 10% Exceeds Rs 50,000 16% Economic Service Charge Description Rate (Charged on turnover and applicable if quarterly turnover exceeds 50 Mn) Tax to be charged on liable turnover (If there was no taxable income in the preceding year) 0.25% Value Added Tax  Description Rate Standard Rate 11% VAT on Financial Services 11% On wholesale and retail business with turnover not less​ than Rs. 100 Mn per quarter 11% Direct export of goods & supply of certain services referred to in section 7 of the VAT Act (Zero rated supplies) 0% Nation Building Tax  Description Rate Manufacturer and Service provider 2% on liable turnover Wholesale or Retail Sale Dis​tributor turnover 2% on 25% of liable All other traders turnover 2% on 50% of liable Supply of Banking and Financial Services 2% of the​ total V​alue Addition Stamp Duty Specified Instrument​ Stamp Duty Affidavit (from 13/5/2013) Rs. 50/- Policy of insurance Rs. 1000 or part Rs. 1/- Warrant to act as Notary Public   Rs. 2000/- Periodic license to carry on trade, business, profession or vocation etc (Other than liquor license) or 10% of license, whichever is less  Rs. 2000/- Any license issued authorizing the holder to carry on any trade or business of sale of liquor for any period specified in such license Rs.20,000/- Claim or demand of money on usage of Credit cards Rs.1000/- or part Rs. 15/- Share certificate - issue or transfer Rs. 1000/- or part Rs. 5/- Mortgage - collecting any property Rs.1000/- or part Rs. 1/- Promissory Note Rs. 1000/- or part Rs. 1/- Lease or hire of any property Rs. 1000/- or part of the aggregate rent or hire (If the term of lease or hire is more than 20 years, the aggregate of the hire or lease payable for the first 20 years of such term is to be considered) Rs. 10/- A receipt or discharge given for Money or Property (including Remuneration) Up to Rs. 25,000/- Exempt Above Rs. 25,000/- Rs. 25/- Share Transaction Levy Description Rate On the turnover (of the buyer and the seller) 0.3% Betting and gaming Levy Description Rate Business of Bookmaker Betting business done through Agents Rs. 4,000,000/- If live telecast facilities are issued Rs. 600,000/- If live telecast facilities are not used Rs. 50,000/- Business of Gaming (casino) per place of business Rs.200, 000,000/- Tax on gross collection on betting or gaming (after deducting winning prize) 10% However, no 10% tax is payable if the gross collection does not exceed one million rupees per month. Construction Industry Guarantee Fund Levy Description​ Rate Value of contract Less than Rs. 15 Mn NIL Not less than Rs. 15 Mn but less than Rs. 50 Mn 0.25% Not less than Rs. 50 Mn but less than Rs. 150 Mn 0.5% Rs. 150 Mn or more​ 1% Exemption: respect of construction contracts for the implementation of Specified Projects approved by the Ministry NIL  ​​​​​​​​​​​​​​​

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