New Single Withholding Tax of 2.5%......!
- kassTop contributor
- Posts : 470
Join date : 2014-02-27
New Single Withholding Tax of 2.5%......!
http://www.inlandrevenue.gov.lk/publications/circulars/2015/SEC_2015_02_-_Withholding_tax_on_interest_paid_by_Banks_or_others_E.pdf
They have removed the income thresholds applicable for individuals. Hence we do not need to handover WHT declarations hereafter (that's what I understood)
However they have introduced a new WHT of 2.5% applicable to all individuals (except senior citizens) which is charged irrespective of the tenor of your deposit or your income capacity.
Even If you have a 3 month FD at 6% p.a you have to pay WHT of 2.5% at maturity This is not a good news for FD holders.
Like to know your ideas on this guys.
- First Guy
- Posts : 2599
Join date : 2014-02-22
Re: New Single Withholding Tax of 2.5%......!
Earlier WHT exemption was for those with income less than 600,000/- per year (50,000/- per month) so only those will be negatively affected as others were anyway paying at least 2.5%
For 100,000/- 3 month FD at 6% the WHT amounts to 37.50/-
- smallvilleTop contributor
- Posts : 1872
Join date : 2014-02-23
Location : Trying to figure out..
Re: New Single Withholding Tax of 2.5%......!
However, if Credit cards interests are reduced to 16%, its gonna be a good saving.
- sereneTop contributor
- Posts : 4850
Join date : 2014-02-26
Re: New Single Withholding Tax of 2.5%......!
Now ppl dont have to submit false declarations.
- Hybrid
- Posts : 745
Join date : 2015-02-03
Location : Colombo
Re: New Single Withholding Tax of 2.5%......!
No need to track the tax dodgers.
Simple system for the banks
No need of forms
No head ache for some finance companies to balance the three present slabs for tax: Zero %, 2.5% and 8%.
But the MOST benefit is that we need not produce more children so that the deposits are made in their names!!
Most of the deposits are spread within the family to avoid taxes. On average the IR will benefit to some degree and bring in more revenue for the Govt.
At least some good thoughts are coming through!
- balapasTop contributor
- Posts : 762
Join date : 2014-02-23
Age : 44