ECONOMYNEXT – The International Monetary Fund did not discuss a digital services tax with Sri Lanka or a whether Sri Lanka should sign on to a OECD/G20 inclusive framework for international corporate tax, a spokesman said.
A so-called Yellen tax sets corporate tax at 15 percent but corporate taxes in Sri Lanka are around 30 percent. The OEDB had G20 has been pushing for equal taxation to stop so-caleld Base erosion and profit shifting (BEPS), and tax holidays are discouraged.
The IMF has not discussed any plans for a digital services tax with the Sri Lankan authorities in the current program.
“…[N]or has it provided any recommendation on whether or not Sri Lanka should sign on to the OECD/G20 inclusive framework agreement for international corporate taxation,” the spokesperson said.
A Sri Lanka parliament panel had discussed a digital services tax recently, claiming that internet companies are not paying tax.
Protectionist domestic companies had claimed that foreign e-commerce firms were not paying income tax, though there is no information whether they are actually making profits.
Sri Lanka had already slammed a tax on credit card transactions to protect domestic e-commerce firms which has been deemed a multiple currency practice by the IMF.
Source: Economy Next