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Sri Lanka Issues Notices on the Tax on Voluntary Disclosure — Orbitax Tax News & Alerts

Sri Lanka's Inland Revenue Department recently issued two notices in relation to the Tax on Voluntary Disclosure introduced by Finance Act No. 18 of 2021, Tax Immunity for Undisclosed Assets, Income or Taxable Supplies and Tax on Voluntary Disclosure, which are dated 6 October and 7 October 2021, respectively. As previously reported, under the TVD regime, qualifying taxpayers that voluntarily disclose undisclosed taxable supplies, income, or assets that should have been disclosed for taxable periods ending up to 31 March 2020 will be subject to a 1% tax on disclosed amounts, provided that a declaration is submitted by 31 March 2022 and certain investment/deposit conditions are met. The first notice provides guidance on how disclosed amounts are to be deposited in Sri Lanka for the purpose of the TVD regime. The second notice provides an overview of the TVD regime, including the taxes amnestied (income tax and VAT), as well as the approved (qualifying) investments.