News
Sweeping tax concession for Indian investor
View(s):The Government has announced several tax concessions to the Krrish Group of India which will develop the Transworks Square land in Fort with a total investment of around US$ 449 million (about Rs. 57.6 billion).
The Indian investment has been identified under the Strategic Development Projects Act and will operate under an agreement with the Board of Investment (BOI) and the Krrish group. The tax concession granted to the project will include an initial ten-year corporate income tax holiday after which there will be a partial exemption.
This will be about half of the applicable tax for another fifteen years. Tax on dividends distributed to shareholders out of profits will be exempted from income tax during the first ten years in which the company makes taxable profit or three years after the start of commercial operations while there will be a five year tax exemption from Pay as You Earn (PAYE) Tax to a maximum of 20 expatriate workers of the company.
The company will also be exempted from the payment of Withholding Tax on interest on foreign loans taken for capital expenditure and on technical fees to consultants during the tax holiday period. It will also be exempted from the Value Added Tax (VAT) and the Port and Airport Development Levy for the import of project-related goods and such local purchases during the project construction period.
Exemption from Customs Duty will also be given to all capital goods imported by the company for the purposes of the project.
The tax concessions have been made by Economic Development Minister Basil Rajapaksa.
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