According to the proposed revisions made for the Inland Revenue Act, it has been recommended to modify the taxes that apply to institutions.
The Inland Revenue (Amendment) Bill No. 24 of 2017 was gazetted yesterday (12).
Below are the relevant proposed amendments:
- The tax imposed on the profit of a small and medium-sized business organization has increased from 14% to 30%.
- Tax on profits earned by manufacturing businesses will be increased from 18% to 30%.
- 14% tax imposed on export business profits up to 30%.
- 40% tax on profits earned by alcohol, tobacco, betting, gambling businesses.
- Upwards of 10% to 30% cess payable on sub-allocation of investment assets in respect of progress profit cess.
- Tax exemptions for IT service providers will be removed from April 1, 2023.
- If a person who is not a permanent employee of an institution earns an amount exceeding one lakh per month by providing services such as teaching, lectures, conducting examinations, examination supervision, etc., a withholding tax of 5% of that amount.