It has been proposed to amend the taxes applicable to the institutions according to the proposed amendments submitted for the Inland Revenue Act.
The Inland Revenue (Amendment) Bill No. 24 of 2017 was gazetted yesterday (12).
Below are the relevant proposed amendments.
- The tax imposed on the profit of small and medium-sized business organizations has increased from 14% to 30%.
- Tax on profits earned by manufacturing businesses will be increased from 18% to 30%.
- 14% tax imposed on export business profits up to 30%.
- 40% tax on profits earned by alcohol, tobacco, betting, and gambling businesses.
- Upwards of 10% to 30% compound payable on sub-divestment of investment assets in relation to capital gains tax.
- Tax exemption given to IT service providers will be removed from April 1, 2023.
- If a person who is not a permanent employee of an institution earns an amount exceeding one lakh per month by providing services such as teaching, lectures, conducting examinations, examination supervision, etc., a withholding tax of 5% of that amount.
- A withholding tax of 5% of that amount if he earns more than one lakh per month while providing services in an organization as a doctor, engineer, chartered accountant, lawyer, software developer, or researcher.
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