Sri Lanka's Inland Revenue Department recently issued two circulars providing guidance in relation to the deduction of withholding tax (WHT) and advance income tax (AIT). The circulars are both effective from 1 April 2020.
The first circular, Circular SEC/2020/03, is directed towards banks and financial institutions and includes guidance on the deduction of WHT and AIT from payments of interest, discounts, and income from Islamic financial transactions (interest) payable to any deposit hol…