Sri Lanka Clarifies Changes in Dividend Taxation Pending Formal Amendment

The Sri Lanka Inland Revenue Department has issued a Notice to Taxpayers regarding changes in the taxation of dividends. The notice clarifies that:

• Dividends received or derived by a non-resident during the period 1 October 2022 to 31 December 2022 are exempt from income tax;
• The applicable income tax rate for dividends received or derived by residents during the period 1 October 2022 to 31 December 2022 is 15%; and
• Dividends paid by a resident company to a member to the extent that such di…