By:Staff WriterColombo (LNW): The Government has widened the tax net making it mandatory for professionals belonging to 14 categories to register themselves with the Inland Revenue Department.
President Ranil Wickremesinghe in his capacity as the Finance, Economic Stabilization and National Policies Minister on Wednesday issued a special gazette notification in this regard.
According to the gazette notification, employees whose monthly contribution from both employee and employer to any Employee Provident Fund (EPF) exceeds Rs. 20,000 are also required to register with the Department.
The Government has made it mandatory for the professionals belonging to 14 categories to register themselves with the Department with effect from 1 June.
The categories are, members of Sri Lanka Medical Council (SLMC), the Institute of Chartered Accountants of Sri Lanka, the Institute of Certified Management Accountants of Sri Lanka, the Institution of Engineers Sri Lanka, the Association of Professional Bankers, members of the Sri Lanka Institute of Architects, Institute of Quantity Surveyors Sri Lanka, Attorneys-at-Law of the Supreme Court of Sri Lanka, individuals who have registered their businesses in Divisional Secretariats etc.
Individuals who are in possession of vehicles registered (other than three-wheelers, motorcycles and hand tractors) in Motor Traffic Department, individuals who have purchased or acquired, by virtue of Deeds Transfer, of any immovable property in Sri Lanka on or after 1 April 2018 were the others to be caught up in the tax net ,
Employees whose monthly contribution from both employee and employer to any Provident Fund is more than Rs. 20,000, any individual who obtains approval for a building plan from a Local Authority, any other individual who receives payment of Rs. 100,000 per month or Rs. 1,200,000 for a 12-month period for providing any services in Sri Lanka will have to register with the tax department.
In addition, any individual who does not belong to any of the aforementioned categories, but is aged 18 years or more as of 31 December 31, or attains the age of 19 years on or after 1 January 2024, is also required to register themselves with the IRD.
State Minister of Finance Ranjith Siyambalapitiya has addressed concerns pertaining to the recent requirement for those aged over 18 as at 31 December 2022, or is due to turn 18 on or after 01 January 2024 to be registered with the Inland Revenue Department (IRD).
Speaking to the media in this regard today (02 June), the State Minister explained that this requirement does not mean that the said individuals will be charged a tax, but instead will receive welfare benefits in the future under this respective tax file number.
As per the relevant communique, employees whose monthly contribution from both the employee and employer to any Provident Fund exceeds Rs. 20,000 are also required to register with the IRD as well as those above 18 years of age.