Sri Lanka Gazettes Inland Revenue Amendment Act

The Sri Lankan Official Gazette May 12 published Law No. 4/2023, amending the Inland Revenue Act. The law includes measures: 1) disallowing deductions of cash transactions exceeding 500,000 Sri Lankan rupees (US$1,627) per day, for calculating an asset’s costs, except for bank or card transactions, from May 8; 2) establishing rules for financial institutions to withhold taxes on payments to nonresidents, from May 8; 3) defining employment income sourced from within Sri Lanka income derived from a resident company conducting business in Sri Lanka; 4) requiring mandatory e-filing of tax returns for all taxpayers, for years of assessment beginning on ...