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  • Notice To The Taxpayers: Change of Value Added Tax Rate Income Tax

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    The Ministry of Finance has approved new tax proposals that will be implemented after relevant legislation is amended. Several changes will take effect from 2019/2020 including exempting income from agriculture, fisheries, livestock and religious institutions from income tax. The tax free threshold for public and private sector employees will be increased to Rs. 250,000 per month and tax rates will be reduced or exemptions increased for various industries and income sources.

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    IT29112019_E

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    The Ministry of Finance has approved new tax proposals that will be implemented after relevant legislation is amended. Several changes will take effect from 2019/2020 including exempting income from agriculture, fisheries, livestock and religious institutions from income tax. The tax free threshold for public and private sector employees will be increased to Rs. 250,000 per month and tax rates will be reduced or exemptions increased for various industries and income sources.

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    © All Rights Reserved
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    5 views1 page

    Notice To The Taxpayers: Change of Value Added Tax Rate Income Tax

    Uploaded by

    amicoindustries984
    The Ministry of Finance has approved new tax proposals that will be implemented after relevant legislation is amended. Several changes will take effect from 2019/2020 including exempting income from agriculture, fisheries, livestock and religious institutions from income tax. The tax free threshold for public and private sector employees will be increased to Rs. 250,000 per month and tax rates will be reduced or exemptions increased for various industries and income sources.

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    © All Rights Reserved
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    of 1

    INLAND REVENUE DEPARTMENT

    Notice to the Taxpayers


    Implementation of TaxAdded
    Change of Value Proposals
    Tax made
    Ratefor
    Income Tax
    on the Instruction of the Ministry of Finance

    As instructed by the Ministry of Finance, new tax proposals made for Income Tax
    and approved by the Cabinet of Ministers, will be implemented subject to formal
    amendments to relevant legislation.

    1) Income from Agriculture, Fisheries and Livestock shall be exempted from


    income tax, with effect from the year of Assessment 2019/2020.

    2) Income Tax Rate applicable on construction industry shall be reduced from


    28% to 14%, with effect from the year of Assessment 2019/2020.

    3) Religious institutions shall fully be exempted from income tax, with effect from
    December 01, 2019.

    4) Tax free threshold of the employment income of all public and private sector
    employees for the purpose of the Pay-As-You-Earn (PAYEE) shall be
    increased from Rs. 100,000 to Rs. 250,000 per month and the excessive
    personal income shall be liable for income tax at the progressive rate of 06%,
    12% and 18% for each tax slab of Rs. 250,000, with effect from January 01,
    2020.

    5) Interest income up to Rs. 250,000 per month shall be exempted from the
    Withholding Tax (WHT), with effect from January 01, 2020.

    6) Income of an individual up to Rs. 3,000,000 per annum from any source of


    income shall be exempted from income tax and the excess income to that
    amount shall be liable for income tax at the progressive rates of 06%, 12% and
    18% for each tax slab of Rs. 250,000, with effect from January 01, 2020.

    7) Income earned from the supply of services for the receipt of foreign currency
    shall be exempted from income tax, with effect from December 01, 2019.

    8) Income from the Information Technology and enabling services shall be


    exempted from all taxes, with effect from the year of Assessment 2019/2020.

    For any further clarification, please contact:

    Secretariat - Tel: 011 - 2135412, 011 - 2135413, 011 - 2135411


    Deputy Commissioner General – Tax Policy - Tel: 011-2135402

    Visit - www.ird.gov.lk

    Commissioner General of Inland Revenue

    TAXES - FOR A BETTER FUTURE

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