Furnishing of Tax Clearance Certificate to Commercial Banks and Authorized Dealers
When outward remittances are made by commercial banks or authorized dealers, they are expected to ensure that the remittances are made in compliance with the tax laws. therefore, you are kindly requested to obtain a Tax Clearance Certificate with regard to remittances mentioned in Part B and forward the same to the respective Bank or Authorized Dealer in order to remit your money.
A clearance certificate is not required in relation to following remittances.
- Remittance of sale proceeds of quoted shares owned by non-residents in companies resident in Sri Lanka.
- Remittance of dividend paid to non-resident shareholders by resident companies.
- Foreign investments by residents of Sri Lanka.
- Transportation expenses in relation to freight forwarding, courier services and airline services involving the carriage of passengers and goods.
- Payments to expatriate employees which include wages, salaries and other benefits which has been subjected to tax under the PAYF, scheme.
- Remittances by export companies in respect of services in relation to advertising and marketing performed outside Sri Lanka.
- Remittances by export companies in respect of registration ol trademarks and other legal charges in lieu of such registration incurred outside Sri Lanka.
- Remittances in relation to annual subscription for membership of professional bodies, journals, magazines and other publication.
A clearance certificate from the Commissioner General of Inland Revenue is required for the following remittances.
- Communication services, which includes telecommunication and internet services
- Computer software and information services
- Royalties, license and franchise fees
- Remittance in respect of foreign loans, capital repayment and interest payments, if such loan has been obtained prior to 01.04.2012.
- Remittances to foreign contractors engaged in public and private sector services in Sri Lanka which include design, construction and installation of projects.
- Contract payments
- Surplus Funds arising from the contracts & projects.
- Remittances in respect of services rendered by persons outside Sri Lanka in relation to management services
- Remittances on service contracts, which include Human Resources Management and Information Technology Management
To obtain the clearance certificate, it is necessary to submit the following documents:
- Letter of request including the details of sender / receiver, amount of the remittance, and the purpose
- Copy of the invoice
- A copy of the agreement and/or any other proof to enable the officers to verify the transaction in relation to the outward remittance
Clearance Certificate will be issued within 24 hours by the International Unit subject to the provision of necessary documents.
If you need more details, please contact to The Commissioner, International Unit 10th floor, Department of Inland Revenue Colombo 2 or call 0112 135030