Sri Lanka: Guidance on withholding tax, advance income tax; employment benefit valuation; non-cash benefit

The Department of Inland Revenue issued tax-related guidance

The Department of Inland Revenue issued tax-related guidance

Article Posted date 16 February 2023

The Department of Inland Revenue issued the following items of tax-related guidance (read more at the hyperlinks provided below):

  • Circular No. SEC/2023/01 (dated 14 February 2023): Guidance to clarify the application of withholding tax / advance income tax. Read the report [PDF 1.1 MB]
  • Circular No. SEC/2022/E/05 (revised and dated 7 February 2023): Guidance regarding employment benefit valuation, under which:
    • Public sector employees have been provided significant relief in relation to transport facilities, accommodation, and communication facilities.
    • Some revisions benefit both private and government sector employees.

Read the report [PDF 229 KB]

  • Circular No. SEC/2022/E/05 (revised and dated 7 February 2023): Guidance on the quantification of non-cash benefits which:
    • Annuls the previous Circular No. SEC/2022/E/05 (dated 22 December 2022)
    • States that if an employee's non-cash benefit was calculated for the month beginning 1 January 2023, in a manner not in accordance with the revised attached circular, the difference in the advance personal income tax deduction needs to be adjusted in the succeeding months

Read the report [PDF 207 KB]

 

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