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Dy. Minister clarifies 15% tax on service exports (Video)
Following the heavy criticism on the imposition of the 15% tax on service exports, Deputy Minister of Economic Development – Prof. Anil Jayantha Fernando has issued a clarification.
Making a special statement, the deputy minister said that while ordinary citizens in Sri Lanka are liable to a maximum of 36% income tax, digital service export providers will be taxed only upto a maximum of 15%.
Noting that digital service providers will be exempted from income tax for the first Rs. 150,000, he said that only 6% will be charged for the next Rs. 85,000, and any other income will be subjected to a maximum of 15% tax.
He also says that no tax will be imposed if digital service export providers were taxed 15% (or more) from the foreign country. However, if they have been taxed less than the 15%, only the balance of the 15% will be charged in Sri Lanka under the double tax relief policy.
The statement of the Deputy Minister is as follows :
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