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Sri Lanka to Introduce New Tax Amnesty Regime — Orbitax Tax News & Alerts

Sri Lanka's Cabinet of Ministers approved the introduction of a tax amnesty regime for voluntary disclosures on 5 July 2021. Legislation for the regime must now be approved by the parliament.

Under the regime, taxpayers that voluntarily disclose unreported income or assets would be subject to a 1% tax on disclosed amounts. Qualifying taxpayers would be exempt from the obligation to pay taxes, penalties, or interest in respect of disclosed amounts and would be free from investigation or prosecution. The amnesty would be available for amounts that should have been disclosed in taxable periods ending up to 31 March 2020. The proposed deadline for disclosure and the payment of the 1% tax is 31 December 2021. Additional details will be published once available.