New IR Act to Come into Effect from April 01, 2018

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The new Inland Revenue Bill which was urecently passed in parliament will be fully implemented from 1st April next year, the Ministry of Finance and Mass Media announced yesterday (13) in a news release.

After the adoption of this new bill, it has been decided that Remittance Tax,capital tax, Withholding Tax and pay-as-you-earn(PAYE) tax would be levied from October 2017 onwards, and the income tax levy would be effective from April 1, 2018.

But the Treasury has decided to impose the new tax bill from 1st April 2018 as instructed by Finance and Mass Media Minister Mangala Samaraweera, claiming that implementation of the two laws can cause difficulties in maintaining accounts in one financial year.