Sri Lanka Tax Agency Issues Circular on Deduction of Withholding Tax, Advance Income Tax

The Sri Lankan Inland Revenue Dec. 23 issued Circular No. SEC/2022/E/03, explaining the requirements for withholding agents to deduct withholding tax and advance income tax (WHT). Topics covered include: 1) the list of payments for which WHT must be deducted, with corresponding rates; 2) payments for which WHT isn’t required to be deducted; 3) the application of DTAs to WHT on payments to nonresidents; 4) exemptions for certain payments exempted from income tax; 5) rules on timing, payment, and remittance of WHT; 6) recordkeeping obligations; and 7) the certification form for WHT deductions. [Sri Lanka, Inland Revenue, 12/23/22]

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