Taxation – FINANCE NEWS

The government to offer tax concessions for investments in REITs

18Nov

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Business, Economy, Real-Estate, Taxation

The government to offer tax concessions for investments in REITs

The government plans to exempt investments in the housing market through Sri Lanka Real Estate Investment Trusts (SLREIT) to be exempted from capital gains tax and reduce stamp duty up to 0.75 percent from the current stamp duty of 4 percent. The measures proposed in the budget 2021 to prmote SLREIT to attract investments into Sri Lanka's Real-estate market. It is proposed to simplify taxes on capital gains, where such taxes will be calculated based on the sale price of a property or the assessed value of a property, whichever is higher. The Dividends are also to be free from Income Tax. The Securities and Exchange Commission of Sri Lanka (SEC) published Rules of SLREIT the Gazette on 31st July 2020.

Sri Lanka announces tax concessions for new listings at CSE

The government announced a proposal to grant 50 percent income tax relief for new listings at Colombo Stock Exchange (CSE). Delivering 2021 Budget speech Prime Minister & Finance Minister Mahinda Rajapaksa announced these plans which are aimed at boosting performances of CSE. In addition, these firms are to be only subjected to a 14% income tax rate for the next 3 years from 2021, as per the proposal.

Sri Lanka announces Special Goods and Services Tax

The government announced a Special Goods and Services Tax (GST) to be introduced for telecommunication, alcohol, cigarettes, vehicles, and betting from 2021 onwards while maintaining most of the other taxes and duties at the current rate. Delivering 2021 Budget speechPrime Minister & Finance Minister Mahinda Rajapaksa announced plans to cut the budget deficit ratio to 4 percent in the medium term from the projected 9 percent this year. WIth a mepahis on tax complinace side, the goverment plans to introduce new laws against auditors and companies that prepare false tax records. Further, a simplified Online Income tax system is also on the cards for income tax payers.