Sri Lanka: Tax relief for SMEs (COVID-19)

Sri Lanka: Tax relief for SMEs (COVID-19)

The Sri Lankan cabinet approved certain tax relief measures specifically for the small and medium size (SME) sector in response to the coronavirus (COVID-19) pandemic.

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The relief measures include:

  • Relief regarding income tax in arrears, for assessments issued up to years of assessment 2018-2019 if the Commissioner General of Inland Revenue is satisfied there has been no willful evasion of tax
  • Allowance of a concessionary period to settle tax liabilities in arrears when agreed upon by the Department of Inland Revenue
  • No additional tax assessment for the year of assessment 2019-2020 for SMEs that paid income tax and filed an income tax return
  • Extended period for submitting a bank guarantee or payment of non-refundable amount when filing an appeal with the Tax Appeals Commission
  • Extended time to pay tax and file a tax return, to 31 December 2020, for payments or filings due during the period 1 March 2020 to 30 June 2020
  • Suspension of implementation of injunction orders issued to banks, suspended to 30 April 2021.

 

Read a July 2020 report prepared by KPMG International


For more information, contact a KPMG tax professional in Sri Lanka:

Shamila Jayasekara | +94 115 426 503 | sjayasekara@kpmg.com

Suresh Perera | +94 115 426 502 | sperera@kpmg.com

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