COLOMBO : The KPMG Academy enlightens the decision makers on “Recent changes in Foreign Exchange Regulations & Tax impact” at the Friday Mid-Afternoon Chat on 18th June 2021 from 3.00 PM onwards.
The session will be conducted by Suresh Perera, Principal – Tax & Regulatory, Rifka Ziyard, Director – Tax & Regulatory and Sachithra Chandrasena, Senior Manger Director – Tax & Regulatory of KPMG.
With the recent foreign exchange crisis faced by Sri Lanka, several changes were introduced during the past few months to stabilize the situation and certain changes were as temporary restrictions imposed due to the COVID-19 pandemic.
The new regulations provide more clarity in relation to the remittance by emigrants including the instances where emigrant allowance maybe subject to the reductions due to investments or payments that had already occurred in the country of emigrant. Further, new account type has been introduced in order to facilitate the requirements of the authorities in segregating the nature of the remittance (i.e. capital and income).
Gazette No 2213/34 and 2213/35 dated 03 Feb 2021 introduced certain changes in relation to the applicable foreign exchange regulations on capital transactions to be carried out by residents and non-residents.
There are several gazettes issued in the recent months to modify certain areas on authorized class or classes of capital transactions including the capital transaction undertaken outsider Sri Lanka by a resident person and the capital transaction undertaken in Sri Lanka by a resident outside Sri Lanka, which leads to enhanced clarity on the process to be adopted in carryout the capital transactions.
Additionally, the rules pertaining to the conversion of remittance of export proceeds to LKR has been changed on several occasions now during this year. The recent changes to the tax law pertaining to tax rates for exporters seem to negatively impact certain exporters of service.
The tax clearance certification process for remittance of payments to non-residents is also subject to certain revisions. The Commissioner General of Inland Revenue has issued a revised notice to the authorized dealers and persons engaged in outward remittance by elaborating the requirement of tax clearance certificate during the pandemic period.
The above are few of the areas lined up for discussion in this interactive session and would also include the temporary restrictions imposed due to the COVID-19 pandemic.
For registrations please contact Seneli on sjayatunge1@kpmg.com or 074 061 0783
