Withholding tax declaration

 

 

 

WITHHOLDING TAX ON RUPEE DEPOSITS

The annual procedure pertaining to the Inland Revenue (Amendment) Act No 10 of 2006 requires you to submit a new withholding tax declaration for the year of assessment commencing 1 April 2013.

Withholding Tax is applicable for all Personal Rupee Savings, Call and Time Deposit accounts. (Excluding Non Resident Rupee Savings accounts, SIA, RANSI and SFIDA accounts)

Withholding Tax payable on interest earned on Rupee deposits would depend on the individual’s total assessable income declared during year of assessment.

The thresholds are as follows

Annual Assessable Income
(for the year of assesment 2013/14)

Withholding Tax Rate

Upto LKR500,000.00

0% p.a.

Between LKR500,000.00 and LKR1,500,000.00

2.5% p.a.

LKR1,500,000.00 and above

8% p.a.

Requirement

Please complete and return the declaration via post to the following address on or before 25 March 2013 or hand over same to the nearest HSBC branch.

HSBC
Manager Service Delivery
525 Union Place
Colombo 2

withholding tax application form