The notification was published under section 11 in the September 02 government gazette notification and the Amendment Act has been named as the Bill Amendment Restrictions Act, No. 38 of 2014.

The Amendment bill has proposed the abolition of the land tax from January 01, 2016.

According to the land tax that was effective from January 01, 2013, if land is being to a foreigner or a company where foreign shares are over 50%, of the tax payable, 15% is charged as a land tax.

In addition however for foreigners operating within the country for over ten years and companies holding over 50% foreign shares operating within the country for the same period, the tax charged is 7.5%.

Similarly with regard to foreign companies incorporated in Sri Lanka, a lower 7.5% rate is applicable if you’re located in a BOI zone, a designation Tourism Development Area, etc or Condominium projects with foreign partnership.

(Rawaya)