• Service: Tax, Global Indirect Tax, Global Mobility Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 12/3/2013

Sri Lanka - Tax proposals in 2014 budget 

December 3:  The government of Sri Lanka presented on 21 November 2013 the 2014 budget to parliament. The budget included both tax and fiscal proposals.

Among the tax proposals are measures that would:

  • Extend the national building tax (NBT), that is imposed at a rate of 2% of gross turnover, to the banking and financial section
  • Impose value added tax (VAT) on previously VAT-exempt goods because of the imposition of the special commodity levy (SCL)
  • Increase the telecommunication levy
  • Expand a direct tax exemption for the redistribution of offshore dividend income
  • Provide a seven-year exemption for royalty income derived by any company from international brands acquired
  • Provide a concessionary rate of 12% for profits derived from the supply of certain services to exporters of goods and services

    • Read a November 2013 report [PDF 791 KB] prepared by the KPMG member firm in Sri Lanka: Fiscal and Tax Proposals

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