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Expat Lankans’ Treasury Bill and Treasury Bond interests exempted from taxes
View(s):Sri Lankans who reside abroad and have subscribed to the country’s Treasury Bills and Treasury Bonds by remitting funds back home are exempted from paying income tax on the interest derived from those investments, the Inland Revenue Department (IRD) said yesterday.
The announcement came a day after the government announced the conclusion of its international bond restructuring exercise, bringing closure to one of the most complex and challenging sovereign debt restructuring processes.
In addition, Treasury Bill and Treasury Bond interests are also exempted from income tax for any Samurdhi community-based bank established under the Department of Samurdhi Development, the IRD explained in a notice, stressing these are the only two instances where paying income tax is exempted.
“Other than these persons, all other taxpayers are required to include interest or discounts received or derived from Treasury Bills or Treasury Bonds in calculating their respective assessable income from business or investment,” the IRD said.
There is no tax credit for such interest, as the interest from Treasury Bills and Treasury Bonds is not subject to Advance income tax or withholding tax.
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