Presentation on indirect tax implications on financial services on 25 January

Wednesday, 23 January 2019 00:00 - - {{hitsCtrl.values.hits}}

A complexity of the financial services contribute to the complexity of the tax issues involved with the financial services industry. Taxes on the financial services whilst is a fascinating area of study, any oversight or ignorance could lead to colossal financial losses to the entity concerned.

Suresh R.I. Perera

Rifka Ziyard

Apart from the direct taxes, the indirect taxes such as Value Added Tax, Nation Building Tax, Debt Repayment Levy and Crop Insurance Levy are charged on financial services. Both VAT and NBT application on the financial services reflects a deviation from the norm of computation of both taxes in the case of other industries.

Use of the invoice credit method in case of VAT and levying the percentage of turnover as NBT are abandoned in lieu of computation of value addition on financial services.

An in depth understanding of the relevant financial services which are exposed to VAT and NBT is a must for accurate compliance. An understanding of the different obligations is mandatory since non-compliance attracts penalty provisions. CIMA Sri Lanka is conducting a comprehensive workshop on the indirect taxes imposed on financial services on 25 January at the CIMA Auditorium.

The workshop will cover the application of Value Added Tax, Nation Building Tax, Debt Repayment Levy and Crop Insurance Levy on banking and financial services and would also provide an in-depth understanding of the chargeability of each tax, types of financial services liable for tax, the concept of Value Addition and the methods of calculating the same. The workshop would also elucidate the administrative provisions pertaining to indirect taxes, including making payments and filing of tax returns as well as elaborating on the penalties for non-compliance.

The key presentations will be delivered by KPMG Principal – Tax & Regulatory Suresh R.I. Perera and Associate Director – Tax & Regulatory Rifka Ziyard.

For further information and assistance on the forum and registration, please contact Kishnika Weerasinghe T: 011 2503880 (Ext: 260) or E: [email protected].