COLOMBO: The Inland Revenue (Amendment) Bill which seeks to amend the Inland Revenue Act No 24 of 2017 was published by way of Gazette on Friday , Oct,7.
The Bill proposes many significant changes to income tax rates, exemptions, personal tax-free relief thresholds, rules for deduction of expenses and introduces mandatory tax at source for return on investments, service fees, profits from employment.
A key change is the increase of income tax rates of corporates to a standard 30% for all other than liquor, tobacco and betting and gaming which continue to be liable at 40%. Further personal tax rates are proposed to be increased up to 36% while the prevailing highest rate is 18%. The personal tax-free threshold is reduced from Rs 250,000 to Rs 100,000 a month. Any person earning more than Rs 100,000 a month will be liable to pay income tax at applicable slab rates starting from 6% as per the published Income Tax Bill.