WITHHOLDING TAX ON RUPEE DEPOSITS

The annual procedure pertaining to the Inland Revenue (Amendment) Act No 10 of 2007 requires you to submit a new withholding tax declaration for the year of assessment commencing
1 April 2010.

Withholding Tax is applicable for all Personal Rupee Savings, Call and Time Deposit accounts. (Excluding Non Resident Rupee Savings accounts, SIERRA, 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	Withholding Tax Rate
Below LKR300,000.00	0% p.a.
Between LKR300,000.00 and LKR1,000,000.00	2.5% p.a.
Above LKR1,000,000.00	10% p.a.

Requirement

Please complete and return the declaration via post on or before 23 April 2010 or hand over same to the nearest HSBC branch.

withholding tax application form