This update was prepared to present time-sensitive information affecting our clients. We will be publishing more detailed analysis of the implications of the proposals mentioned below upon the enactment of these proposals.
Government co-media spokesperson stated that certain changes have been made to taxes during the first Cabinet meeting. Changes as below,
• Reduce VAT from current 15% to 8% w.e.f 01 Dec 2019 – VAT on Financial services will remain at 15%
• 2% NBT removed w.e.f 01 Dec 2019– including for Financial Services businesses
• Telecommunications Levy reduced by 25% (current voice levy of 15% to likely to be reduced to 11.25%)
• Foreign Currency earnings exempted from income tax
• Construction Industry to be placed on 14% income tax instead of 28%
• IT & enabling services to be made tax free from all taxes
• Tax free threshold for turnover for Vat to be raised from Rs.1mn per month to Rs.25mn per month
• Farm income from agriculture, fishing & livestock to be made income tax free
• Capital gains tax on stocks, debit tax on financial institutions and debt service tax to be removed
• Tourism business will be treated as export for zero rate provided that 60% turnover is sourced from local supplies.
• Withholding Tax on interest income to be removed for those with monthly interest income less than Rs 250,000.
• PAYE tax free threshold to be increased to Rs.250,000 from current Rs.125,000 per month for all public & private sector employees w.e.f 1 Jan 2020
It's no doubt that ICC is tax expert. ICC is expertise with taxation laws, regulations and strategies have enabled us to minimize our taxation liabilities and improve our business operations. We always keep well-informed and up-to-date which leads to a highly professional and organized service. This is exactly what need is. In addition have guide our clients with regular government CB reports which keeps informed of tax regulations, legislations, treaties and incentives.