Sri Lanka to Introduce New Tax Amnesty Regime

Sri Lanka's Cabinet of Ministers approved the introduction of a tax amnesty regime for voluntary disclosures on 5 July 2021. Legislation for the regime must now be approved by the parliament.

Under the regime, taxpayers that voluntarily disclose unreported income or assets would be subject to a 1% tax on disclosed amounts. Qualifying taxpayers would be exempt from the obligation to pay taxes, penalties, or interest in respect of disclosed amounts and would be free from investigation or prose…