Incentives and income tax structure effective after IRA bill
View(s):The Finance Ministry will be introducing a new investment incentive scheme and new income tax structure after the presentation of the new Inland Revenue Act in Parliament shortly.
This was announced by Finance Minister Ravi Karunanayake at a hurriedly convened media conference in Colombo on Sunday May 14.
Under the new scheme, investments over US$2 billion for ports development will be fully exempted from Corporate Tax.
Incentives will also be granted to investments less than $3 million, investments that generate significant number of employment opportunities, as well as large-scale investments.
Higher rates of Corporate Tax are to be imposed on liquor, tobacco, and betting and gaming. Tax free threshold for Personal Income Tax is Rs. 500,000 per annum while threshold for PAYE tax is Rs. 1.2 million.
He added that hub activities, export of IT/BPO services, export of gold, gem and jewellery, relocation of international headquarters, earning from international trading platform, organic fertilizer production, solid waste management, export of services by individuals, agriculture/poultry/dairy, middle income housing would be exempted from the Corporate Tax.
Tax on Capital Gain will be 10 per cent, which is applicable to land and buildings and other investments excluding quoted shares. (Bandula)