[Sri Lanka] Government relaxes taxes on some non-cash benefits

Sri Lanka’s government has offered tax relief by exempting some non-cash benefits received by employees as part of their total package of benefits and emoluments when computing PAYE, Daily Mirror Online reports.

The February 8 announcement was made in response to growing public outrage about the government’s increase of the personal income tax rate to 36 per cent for the highest income bracket, at the start of the year. 

In a circular issued by the Inland Revenue Department - under instructions from President Ranil Wickremesinghe, in his capacity as the Finance Minister - the government stated it had decided to exempt some non-cash benefits, which become part of the PAYE calculation. 

These reportedly include the value of company shares or the share options offered by employers, value of residence provided, allowances for transport facilities - which include vehicles, drivers and fuel, value of the telephone allowances - and concessionary rate loans obtained by employees. 

This circular was issued to coincide with President Wickremesinghe’s policy statement in Parliament. The changes will apply from January 1. Entities that had already computed and deducted PAYE differently from the revised terms under the circular have been instructed to adjust the difference immediately in the succeeding months.  

Source: Daily Mirror Online

Sri Lanka’s government has offered tax relief by exempting some non-cash benefits received by employees as part of their total package of benefits and emoluments when computing PAYE, Daily Mirror Online reports.

The February 8 announcement was made in response to growing public outrage about the government’s increase of the personal income tax rate to 36 per cent for the highest income bracket, at the start of the year. 

In a circular issued by the Inland Revenue Department - under instructions from President Ranil Wickremesinghe, in his capacity as the Finance Minister - the government stated it had decided to exempt some non-cash benefits, which become part of the PAYE calculation. 

These reportedly include the value of company shares or the share options offered by employers, value of residence provided, allowances for transport facilities - which include vehicles, drivers and fuel, value of the telephone allowances - and concessionary rate loans obtained by employees. 

This circular was issued to coincide with President Wickremesinghe’s policy statement in Parliament. The changes will apply from January 1. Entities that had already computed and deducted PAYE differently from the revised terms under the circular have been instructed to adjust the difference immediately in the succeeding months.  

Source: Daily Mirror Online