Withholding tax to be removed from January

(FASTNEWS | COLOMBO) – The removal of withholding tax levied from the customers of banks as announced by the new Government last month will be effective from January, 2020 and completed in two phases, Inland Revenue Department (IRD) said.

Accordingly, the customers who are earning less than Rs.250,000 per month as interest would be exempted first from paying the tax.

Meanwhile, those who are earning more than Rs.250,000 a month as interest would be levied a 5% withholding tax up to March 31, and thereafter it will be totally scrapped.