Surcharge Tax will affect EPF, warns SJB

SJB Colombo District MP Dr. Harsha De Silva told the media yesterday that the Surcharge Tax Bill contained provisions applicable to the Employees Provident Fund (EPF).

The Gazette containing the relevant bill on the Surcharge Tax was published yesterday.

According to the bill, the Surcharge Tax will be levied on any individual, partnership, or company, whose taxable income calculated in accordance with the provisions of the Inland Revenue Act, No. 24 of 2017, exceeds rupees two thousand million, for the year of assessment commencing on April 1, 2020, at the rate of twenty-five percent, Dr De Silva said.

According to the definition of the Inland Revenue Act, a company is included in the definition of a provident fund, a pension fund, a pension gratuity fund, or a similar fund, Dr. de Silva said, noting that the bill would pave the way for 25% Surcharge Tax to be levied on multiple funds including the EPF.

(Source: The Island)