Sri Lanka’s Finance Ministry to scrap annual company registration fee to assist business start ups
Minister of Finance in Sri Lanka Mangala Samaraweera has reportedly received approval from the Cabinet of Ministers to scrap the annual company registration fee, which was introduced in 2016.
The fee was viewed by many as a tax discouraging incorporation.
The 2016 budget had proposed an annual tax of Rs. 1.5 million for listed companies, Rs. 250,000 other public companies and Rs. 30,000 for a private company.
“In line with the policy to promote business start-ups and entrepreneurship towards and enterprising Sri Lanka it is proposed to limit the proposal to introduce the Annual Company Registration Levy in the budget 2016, only to the year for which it was proposed,” a note to Cabinet by Minister Samaraweera has stated.
The fee not only hit start ups but a Rs. 250,000 fee also discouraged small family companies and partnerships from becoming incorporated bodies.
However, the fee will now be repealed following Cabinet approval.
The Sri Lankan government is engaged in introducing many reforms with the aim of promoting businesses and improving the ease of doing business environment in the country. The business friendly environment being developed by the government along with the project pipeline in Sri Lanka’s development programme have opened a host of investment opportunities for potential investors.
|Article Code :||VBS/AT/28092018/Z_2|