Taxation of international executives
Source: Employees Provident Fund Act, No. 15 of 1958 as amended; Employees Trust Fund Act, No. 46 of 1980. Social Responsibility Levy which is administered by the Finance (Amendment) Act, No. 5 of 2005, Land (Restrictions and Alienation) Act No 38 of 2014.
Are there social security/social insurance taxes in Sri Lanka? If so, what are the rates for employers and employees?
|Type of insurance||Paid by employer||Paid by employee||Total|
|Employees' provident fund||12%||8%||20%|
|Employees' trust fund||3%||0%||3%|
Employers are required to contribute 12 percent of the relevant employee’s earnings and remit to the Employees’ Provident Fund (EPF). Earnings for this purpose means basic wage or salary plus all cost-of¬living and similar allowances and payments in respect of holidays, but not overtime payments. Contributions by the employees are made at 8 percent to the EPF.The above is the minimum contribution requirement.
All employers are required to contribute to the Employees’ Trust Fund (ETF). The statutory minimum contribution is 3 percent.
Are there any gift, wealth, estate, and/or inheritance taxes in Sri Lanka?
Are there real estate taxes in Sri Lanka?
Land lease Tax:
Purchase of land by a foreigner is prohibited by law. However, lease of land by a foreigner is permitted subject to an upfront lease tax at 15% on the total lease value.
It has been proposed to remove the land lease tax effective 1 January 2016.Same is however pending legal enactment.
For this purpose, a “foreigner” is defined to include a person who is not a citizen of Sri Lanka and “land” is defined to include, “interest in land. Land cover with water and any house of building situated therein”.
Are there sales and/or value-added taxes in Sri Lanka?
Are there unemployment taxes in Sri Lanka?
Are there additional taxes in Sri Lanka that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax, and so on.
Social responsibility levy of 1 percent was rescinded with effect from 1 April 2008.
Stamp duty is levied on transfer of land and building on certain specified instruments prescribed in the law.
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