With Holding Tax
Do you Know how to get rid of WHT in new Income Tax Act? AS per the ACT resident individual is subject to WHT when registered tax payer making the payment to such person.
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bnishantha99
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Re: With Holding Tax
WHT is deductible for all rent- 10%, services- 5% in most of cases. I have not considered here special cases. Act define it sec 84 as follows.
Withholding Tax ( WHT ) shall be deducted from the following payments or allocation which has
a source in Sri Lanka and which is paid by a person to any Resident or Non-Resident Person :
Type of Payment Rate of WHT
- Interest paid to Senior Citizen 5 % on amount exceeding Rs 1.5 Mn
per annum
- Interest or Discount paid in all other Cases 5 %
- Rent paid to Resident Person 10 %
- Dividend, Royalty, Winnings from a lottery, 14 %
reward, betting or gambling
- Partner’s Allocation of Income 8 %
- Gem Sold at Auction conducted by
National Gem and Jewellery Authority 2.5 %
Change in ownership structure is the only solution since this had been imposed on resident individual.
Withholding Tax ( WHT ) shall be deducted from the following payments or allocation which has
a source in Sri Lanka and which is paid by a person to any Resident or Non-Resident Person :
Type of Payment Rate of WHT
- Interest paid to Senior Citizen 5 % on amount exceeding Rs 1.5 Mn
per annum
- Interest or Discount paid in all other Cases 5 %
- Rent paid to Resident Person 10 %
- Dividend, Royalty, Winnings from a lottery, 14 %
reward, betting or gambling
- Partner’s Allocation of Income 8 %
- Gem Sold at Auction conducted by
National Gem and Jewellery Authority 2.5 %
Change in ownership structure is the only solution since this had been imposed on resident individual.