Value Added Tax (V.A.T.) will take effect from 01st November, 2016
V.A.T. Amendment Bill was passed in the Parliament with majority of votes. V.A.T. rate will be increased from 11% to 15% and threshold on retail and wholesale trade has been reduced to Rs. 50 million per annum. Further, the present Nation Building Tax rate of 2% will remain unchanged
Date – 27th October, 2016
Nihal Hettiarachchi & Company wins the award “Audit Firm of the Year – Medium Category” at the South Asian Partnership Summit & Business Awards
Nihal Hettiarachchi & Company (NH & Co.,) was awarded the Audit Firm of the Year – Medium Category at the South Asian Partnership Summit & Business Awards which is designed to recognise the prestige of the outstanding companies, organizations, and leaders in South Asian Region business world. The goal of SAPS is to provide a forum to establish the standards of excellence for quality development and to honour the people and organisations responsible for developing the most effective actions that exemplify that excellence. NH & Co., from its humble beginnings in 1984, has come a long way to become the most sought after employer among the leading accounting and business advisory firms in Sri Lanka.
Judges of the event consist of a select group of professionals chaired by Dr. R.L. Bhathiya who have direct experience in relevant industry with an in-depth understanding of the current state-of-the-art standards in company’s development and technology.
These awards were scheduled on 13th October, 2016 at Waters Edge, Colombo. The Convention was attended by leaders from different business fields, professionals from the worlds of economics, the arts and corporate image, quality experts, as well as academic personalities and representatives from the diplomatic corps.
HLB ASIA PACIFIC REGIONAL CONFERENCE 2016
HLB International is well positioned across Asia Pacific where it ranks Top Ten in many countries including Australia, Greater China, Malaysia, Indonesia, Philippines and Vietnam, while having a well-established and active presence in other Asian markets.
HLB International holds a number of international and regional conferences every year which are a great opportunity for HLB professionals to network together and get to know each other personally. Close, personal relationships between HLB members contribute to making HLB a personalised and cohesive network, thus allowing for the smooth running of clients business across borders.
HLB Asia Pacific Regional Conference 2016 hosted by AASC, took place in Hanoi, Vietnam from 28th to 30th July. The theme of the conference was Cross-Broder Investment, Challenges and Prospects.
Mr. Dinuk Hettiarachchi, Ms. Erandi Weerasuriya and Mr. Nadeeka Suranjana represented Nihal Hettiarachchi & Company (NH & Co) at the conference. NH & Co., officially launched the Doing Business in Sri Lanka booklet by giving the first copy of the booklet to the Chief Executive of HLB International, Mr. Rob Tautges.
The Honorable Supreme Court suspends the Notice on Value Added Tax and Nation Building Tax dated 29 th April, 2016 – 12/07/2016
The Hon. Supreme Court today issued an order to suspend the Notice issued by the Commissioner General of Inland Revenue on Value Added Tax and Nation Building Tax dated 29 th April, 2016. Accordingly, the Value Added Tax rate will be 11% and the Nation Building Tax rate will continue to be 2% with immediate effect.
The Institute of Chartered Accountants of Sri Lanka (CASL) issues Sri Lanka Related Service Practice Statement 4752 – 29/06/2016
The Council of the CASL today issues the Sri Lanka Related Service Practice Statement 4752 to provide guidance on the compliance with the corporate governance directive issued by the Central Bank of Sri Lanka for finance companies.
The Related Service Practice Statement is effective for engagements commencing on or after 01 st Janury, 2016 in the Sri Lankan context.
Tax Alert on new transfer pricing regulations in Sri Lanka
The Department of Inland Revenue issued instructions to tax payers by Extraordinary Gazette Notice No.1907/26 dated 25th March, 2015, on details to be submitted pertaining to transactions with associated undertakings. This was in addition to the existing Extraordinary Gazette Notice No. 1823/05 dated 12th August, 2013 on initial guidelines of transfer pricing regulations in Sri Lanka.
RNH Welfare Society has launched a disaster relief programme – 20/05/2016
RNH Welfare Society has launched a disaster relief programme. The project aims was to provide dry foods, cloths, Sanitary items, etc., to the people affected by the prevailing inclement weather condition.
NH takes new initiatives with its collaboration with HLB International,a leading world wide network of accounting firms and business advisors – 14/05/2016
NH takes new initiatives with its collaboration with HLB International,a leading world wide network of accounting firms and business advisors. This was formally launched along with its new website on 16th May 2016 at OPA Auditorium.
Inland Revenue Act to be amended – 04/05/2016
The Cabinet has passed a proposal to amend the Inland Revenue Act to improve its clarity and transparency.
The Cabinet of Ministers has approved the proposal made by Hon. Ravi Karunanayake, Minister of Finance, to instruct the Legal Draftsman to redraft the Inland Revenue Act No. 10 of 2006 according to international standards in order to improve clarity and transparency as proposed by the budget 2016.
It was noted that attracting investors has become an issue due to number of amendments to the Act incorporated from time to time. Simplification and modernization of the Act based on acceptable tax principles is a timely requirement to attract investors.
Ministry of Finance issues a notice on changes pertaining to V.A.T. & N.B.T. effective from 02nd May, 2016 – 02/05/2016
The Ministry of Finance today issued a press notice on changes to Value Added Tax (V.A.T.) and Nation Building Tax (N.B.T.) to be implemented from 02nd May, 2016. Tax liable threshold has been reduced to Rs. 3Mn per quarter or Rs. 12Mn per annum. This threshold will be applicable for wholesale and retail trade as well of which the V.A.T. liable threshold was Rs. 100Mn previously. V.A.T. rate has been increased to 15% from 11% and N.B.T. rate will remain unchanged at 2%. Some exemptions on selected supplies have been removed effective from today.
Imposition of Economic Service Charge (ESC) in Advance on the turnover of Importers of items subject to Special Commodity Levy – 18/04/2016
As instructed by the Ministry of Finance on implementation of Budget Proposals 2016, Inland Revenue Department has today issued a Notice on provisions relating to charging of ESC in advance on the turnover of importers of items subject to Special Commodity Levy (SCL) under the Special Commodity Levy Act, No. 48 of 2007, with effect from 01.04.2016. The ESC in advance should be paid either in cash or bank draft to the banks by the importers of items subject to SCL before clearance of such items from the Sri Lanka Customs, at the rate of 0.5% on the CIF value certified by the Director General of Customs.
STL will be reintroduced – 18/04/2016
The Government has taken a policy decision to reintroduce the share transaction levy at the rate of 0.3 percent with effect from 15 April, 2016. The levy would be charged from every buyer and seller on the turnover of every share trading transaction done on the CSE.
The share transaction levy was removed from January 1, 2016 consequent to the Budget proposal 2016.
Nihal Hettiarachchi & Company goes international – 18/04/2016
Nihal Hettiarachchi & Company joins the network of HLB International, a leading worldwide network of independent professional accounting firms and business advisers. Formed in 1969, HLB International services clients through its member firms in 130 countries, their 2,100 partners and 19,000 staff in over 600 offices worldwide. Member firms are well-established locally with many firms ranked among the top twelve nationally.
Nihal Hettiarachchi & Company CEO/Partner Dinuk Hettiarachchi commented: "It gives me great pleasure to become a new member representing the HLB International network in Sri Lanka. Our firm, from its humble beginnings in 1985, has come a long way to become one of the leading accounting and business advisory firms in Sri Lanka. With a team of 6 partners and staff of over 100+ employees, Nihal Hettiarachchi & Company is geared to represent HLB International very actively in Sri Lanka.
HLB International is a member of the Forum of Firms and focuses on quality and personal service, reinforced by regular quality assurance reviews of all member firms, an up-to-date ISA compliant international audit manual and membership of external professional bodies focused on quality issues.
IRD confirms proposals on Economic Service Charges and Income Tax effective from 01t April, 2016 – 01/04/2016
The Department of Inland Revenue has issued a notice on 08th of April, 2016 with regard to provisions applicable from 01st April, 2016 on Economic Service Charges and Income Tax. Proposals were made in the Budget 2016 to introduce two corporate tax rates (15% and 30%) and a flat rate of 15% for individuals. These proposals were subsequently revised and the Department issued a Circular SEC /2016/04 on 28th March, 2016. This Circular was also withdrawn on 01st of April, 2016 on the instructions of the Ministry of Finance.
Inland Revenue Department withdraws the Circular SEC /2016/04 dated 28th March, 2016 – 28/03/2016
The Inland Revenue Department today withheld the Circular SEC/2016/04 issued on 28th March, 2016 regarding implementation of the proposals on income tax. The Circular specified provisions with regard to corporate income tax rates, P.A.Y.E. and personal income tax rates effective from 01st April, 2016. Upon the withdrawal of this Circular, current provisions will continue to apply until further notice.