Sri Lanka Notices on Individual Income Tax (PAYE), Removal of Economic Service Charge, VAT Exemption for Accommodation, and VAT Registration

Sri Lanka Inland Revenue has published several notices in relation to recent tax reforms. The notices are summarized as follows:

Guideline for Deduction of PAYE Tax for the Period from 01.01.2020 to 31.03.2020

This notice concerns new guidelines on withholding tax under the PAYE scheme to account for changes in the tax brackets for individual employment income. This includes that for the three-month period 1 January 2020 to 31 March 2020, the brackets and rates for cumulative income for …