• Sri Lanka will increase the withholding tax on deposits to 10% from 5%, with exemptions for lower-income brackets and measures to reclaim taxes for those in lower tax brackets, aiming to broaden the tax net rather than impose additional burdens.

Sri Lanka has agreed with the International Monetary Fund to raise the withholding tax on deposits from 5 percent to 10 percent, while providing exemptions for lower-income brackets, President Anura Kumara Dissanayake announced. Depositors earning less than 150,000 rupees per month can obtain exemptions through the Department of Inland Revenue, while those in income tax brackets below 10 percent can reclaim the additional taxes. A special unit will be established within the department to guide the public on these changes, which aim to widen the tax net rather than increase taxes on individuals.

Sri Lanka to hike withholding tax on deposits to 10-pct, low earners exempt | EconomyNext