Tax Concessions Provided for Projects Identifed as Strategic Development Projects

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0	Gazette Number	Date	Project	Company	Tax	Details of Concession
1	1700/4	April - 5-11	Build a Luxury Hotel as a Mixed Use Complex including High Quality Residencies and a High- End Shopping Mall, in Fort Colombo 1.	Shangri- La Investments Lanka (Private) Limited	Corporate Income Tax	A 10 year corporate income tax holiday period under the Inland Revenue Act No.10 of 2006 commencing from either the first year in which the Company makes a taxable profit or three (03) years after commencement of commercial operations, whichever falls first and subsequently a concessionary rate of 6% for 15 years.
2					Personal Income Tax	Dividends received by shareholders are exempted for 10 years. A maximum of 20 Expatriate staff members are exempted from PAYE for 5 years. The Company shall be exempted from the payment of Withholding Tax on interest on foreign loans for capital expenditure, technical fees to consultants and on management fees, royalty payments, and marketing fees. Provided these payments are made to one of the following subsidiaries of Shangri-La Asia Limited. * Shangri-La International Hotel Management Ltd. —
3					The port and airport development levy	Exempted during the project construction period.
4					Customs Ordinance	Importation of project-related goods and the local purchases of project-related goods and services during the project Construction period.
5					Value Added Tax ( VAT)	Excluded for the importation of project-related goods and the local purchases of project-related goods and services during the project Construction period.
6	1700/5	April - 5-11	LuxuryHotel and Residential Units / Villas in Hambantota in the Southern Province.	Shangri- La Investments Lanka (Private) Limited	Corporate Income Tax	A 10 year corporate income tax holiday period under the Inland Revenue Act No.10 of 2006 commencing from either the first year in which the Company makes a taxable profit or three (03) years after commencement of commercial operations, whichever falls first and subsequently a concessionary rate of 6% for 15 years.
7					Personal Income Tax	Dividends received by shareholders are exempted for 10 years. A maximum of 20 Expatriate staff members are exempted from PAYE for 5 years. The Company shall be exempted from the payment of Withholding Tax on on interest on foreign loans for capital expenditure, technical fees to consultants and on management fees, royalty payments and marketing fees. Provided these payments are made to one of the following subsidiaries of Shangri-La Asia Limited. * Shangri-La International Hotel Management Ltd.
8					The port andairport development levy	Exempted during the project construction period
9					Custome Ordinace	Importation of project related goods and the local purchases of project related goods and services during the project Construction period.
10					VAT	Excluded for the importation of project-related goods and the local purchases of project-related goods and services during the project Construction period.
11	1789/22	Dec-15-12	Construct and operate a 475 roomed city hotel with 90 Serviced Apartments at No. 116, Galle Road, Colombo 03	Sinolanka Hotels and Spa (private) Limited	Corporate Income Tax	A 10 year corporate income tax holiday period under the Inland Revenue Act No.10 of 2006 commencing from either the first year in which the Company makes a taxable profit or three (03) years after commencement of commercial operations, whichever falls first and subsequently a concessionary rate of 6% for 15 years.
12					Personal Income Tax	Dividends received by shareholders are exempted for 10 years. A maximum of 20 Expatriate staff members are exempted from PAYE for 5 years. The Company shall be exempted from the payment of Withholding Tax on on interest on foreign loans for capital expenditure, technical fees to consultants and on management fees, royalty payments and marketing fees. Provided these payments are made to one of the following subsidiaries of Hyatt International South West Asia Ltd. Hyatt International Corporation
13					Ports and Airport Development Levy	Exempted on all imports sourced during the project implementation period
14					Customs Ordinance	Exempted from customs duty during the project implementation period
15					VAT	Excluded for the importation of project related goods and the local purchases of project related goods and services during the project implementation period.
16	1788/03	Oct-1-2012	Project to set up a mixed development project, at Transworks Square land, Colombo - 01	Krish Group of India	Corporate Income Tax	10 Year Tax free and 15 on a concessionary rate
17					Personal Income Tax	Dividends received by shareholders are expemted for 10 years. A maximum of 20 Expatriate staff members are exempted from PAYE for 5 years. The Company shall be exempted from the payment of Withholding Tax on on interest on foreign loans for capital expenditure and technical fees to consultants
18					Ports and Airport developemnt Levy	Exempted during project implementation period
19					Customs Ordinance	Exempted on all imports sourced during the project implementation period
20					VAT	Excluded for importation of project related goods and the local purchases of project related goods and services during the project implementation period.
21					Finance Act No 5 of 2005	Exempted from the payment of construction under the Gurantee Fund Levy
22	1782/28	Oct-31-2012	The Notification which identified the Project to construct, build and operate a Mixed Utility Complex including a luxury hotel at Fort, Colombo 01 in the Western Province,	WelcomHotels Lanka (Private) Limited	Corporate Income Tax	A 10 year corporate income tax holiday period under the Inland Revenue Act No.10 of 2006 commencing from either the first year in which the Company makes a taxable profit or three (03) years after commencement of commercial operations, whichever falls first and subsequently a concessionary rate of 6% for 15 years.
23					Personal Income Tax	Dividends received by shareholders are exempted for 10 years. A maximum of 20 Expatriate staff members are exempted from PAYE for 5 years. The Company shall be exempted from the payment of Withholding Tax on interest on foreign loans for capital expenditure and technical fees to consultants
24					Ports and Airport developemnt Levy	Exempted during project implementation period
25					Customs Ordinance	Exempted on all imports sourced during the project implementation period
26					VAT	Excluded for importation of project related goods and the local purchases of project related goods and services during the project implementation period.
27					Finance Act No 5 of 2005	Exempted from the payment of construction under the Gurantee Fund Levy during the project implementation period.
28	1796/9	Feb-06-2013	The project for Development, operation and management of a special zone for heavy industries inter-alia sourcing and establishing other Board of Investment of Sri Lanka approved projects at Sampor area of Trincomalee.	Sri Lanka Gateway Industries (Private) Limited	Corporate Income Tax	A 25 year income tax-free holiday will commence from either the first year in which the Project Company makes a taxable profit or from two (02) years after commencement of commercial operations, whichever falls first.
29					Personal Income Tax	Dividends received by shareholders are exempted for 25 years. A maximum of 20 Expatriate staff members are exempted from PAYE for 5 years. The Company shall be exempted from the payment of Withholding Tax on interest on foreign loans for capital expenditure and technical fees to consultants
30					Ports and Airport development Levy	Shall not be applicable on the importation of project related capital and construction goods and the local purchases of project related capital goods during the project implementation period of 07 years.
31					Customs Ordinance	All capital goods imported in the name of the project shall be exempted from the Customs Duty
32					VAT	Shall not be applicable on the importation of project related capital and construction goods and the local purchases of project related capital goods during the project implementation period of 07 years.
33					NBT	Shall not be applicable on the importation of project related capital and construction goods and the local purchases of project related capital goods during the project implementation period of 07 years.
34	1832/22	Oct-17-2013	Project to set up a refinery to import raw sugar for refining and sale in the local market and export in the Free-Port Area of the Hambantota Port in the Southern Province. The Project shall commence commercial operations within Seven (07) years from the date of the Project Agreement signed with the Board of Investment of Sri Lanka on 7th February 2013	Lanka Sugar Refinery Company (Private) Limited	Corporate Income Tax	A 10 year income tax-free holiday will commence from either the first year in which the Project Company makes a taxable profit or from two (02) years after commencement of commercial operations, whichever falls first.
35					Personal Income Tax	Dividends received by shareholders are exempted for 10 years. A maximum of 20 Expatriate staff members are exempted from PAYE for 5 years. The Company shall be exempted from the payment of Withholding Tax on interest on foreign loans for capital expenditure and technical fees to consultants
36					Ports and Airport developemnt Levy	Shall not be applicable on the importation of project related capital and construction goods and the local purchases of project related capital goods during the project implementation period of 07 years.
37					Customs Ordinance	All capital goods imported in the name of the project shall be exempted from the Customs Duty
38					VAT	Shall not be applicable on the importation of project related capital and construction goods and the local purchases of project related capital goods during the project implementation period of 07 years.
39					NBT	Shall not be applicable on the importation of project related capital and construction goods and the local purchases of project related capital goods during the project implementation period of 07 years.
40					Finance Act No 12 of 2012	The project shall be exemped from customs duty under the Imports and Exports ( Control ) Act No. 1 of 1969 and Special Commodity Levy on import of raw materials under the Special Commodity Levy Act No.48 of 2007.
41	2224/02	Apr-19-2021	“Dedicated Pharmaceutical Manufacturing Zone” ( in an area of 400 acres of land owned by the Board of Investment of Sri Lanka in Hambantota-Arabokka area in two phases	Individual enterprises identified by the BOI as falling within the purview of the Strategic Development Project identified.	Corporate Income Tax	For Income generated through exports (including deemed exports) and import substitution via sales to the local market will be exempted for a minimum of five (05) years up to a maximum of ten (10) years from the year in which the enterprise commences to make profits or any year of assessment not later than 02 years reckoned from the date on which such enterprise commences commercial operations, whichever falls first.
42					Personal Income Tax	A maximum of 20 Expatriate staff members are exempted from PAYE for 5 years.WHT will be exempted for payments on foreign loans for capital expenditure and technical fees to consultants
43					Ports and Airport development Levy	All imports of construction related items, capital goods and raw materials receive exemption
44					Custom Ordinance	All imports of construction related items, capital goods and raw materials receive exemption
45					VAT	All imports of construction related items, capital goods and raw materials receive exemption
46					CESS	All imports of construction related items, capital goods and raw materials receive exemption
47	2224/09	Apr-20-2021	“Dedicated Textile Manufacturing Zone” in an area of up to 400 acres of land to be owned by the Board of Investment of Sri Lanka in Eravur, Batticaloa District	Individual enterprises identified by the BOI as falling within the purview of the Strategic Development Project identified.	Corporate Income Tax for income generated through exports and imports substitution by selling in the local market.	The tax exemption period is a minimum of 5 years and a maximum of 10 years and varies depending on the number of employmees. The exemption period will commence 18 months from the date the agreement is finalised with the BOI.
48					Personal Income Tax	A maximum of 10 Expatriate staff members are exempted from PAYE for 5 years.WHT will be exempted for payments on foreign loans for capital expenditure and technical fees to consultants
49					Ports and Airport developemnt Levy	All imports of construction related items, capital goods and raw materials receive exemption

ஆக பதிவிறக்கம்

The Strategic Deveopement Projects Act, No.14 of 2008 aims to promote strategic development projects by poviding tax exemptions for a stipulated time period. The Board of Investment of Sri Lanka along with the relevant line minsitries will identify certain projects that will add value and take the economy to greater heights and allow certain tax exemptions for said projects. Following is a compilation of such projects along with the type of taxes and time periods for which they're exempted from.

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