Who is liable for services export tax in Sri Lanka?

Individuals in Sri Lanka, including freelancers who provide services to external parties and bring back foreign exchange will be liable to a 15 percent services export tax, a tax specialist said.

What is import tax in Sri Lanka?

It is a tax on domestic consumption of goods and services. The goods imported into Sri Lanka and goods and services supplied within the territorial limits of Sri Lanka are the subject matter of this tax. It is a multi-stage tax levied on the incremental Value at every stage in the production and distribution chain of Goods and Services.

Are foreign exchange inflows taxed in Sri Lanka?

The amendment on taxing foreign exchange inflows says “gains and profits earned or derived from any service rendered in or outside Sri Lanka to any person to be utilized outside Sri Lanka, where the payment for such services is received in foreign currency and remitted through a bank to Sri Lanka -15%.

Does Sri Lanka have an income tax exemption?

Under Sri Lanka’s income tax law that has been the case up to now. “In a very brief period between 2018 and 2019, there was the exemption removed, but it was brought back in, because of the foreign currency inflow that it used to bring in,” Afker said.

Why does Sri Lanka go to the IMF?

Sri Lanka has to go to the IMF often because the central bank prints money to suppress rates triggering forex crises and then ad hoc tax changes are made, critics say. Sri Lanka first started going to the IMF in the 1960s, as money was printed to re-finance rural credit.