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Backstage
Backstage
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Sri Lanka to tax unit trusts at 10-pct for individuals Empty Sri Lanka to tax unit trusts at 10-pct for individuals

on Mon May 15, 2017 1:55 am
Message reputation : 100% (2 votes)
Sri Lanka to tax unit trusts at 10-pct for individuals
May 14, 2017
ECONOMYNEXT - Sri Lanka will tax profits of unit trusts (mutual funds under a specific law) at 10 percent for individuals and a higher rate for corporates at the hands of beneficiaries, Finance Minister Ravi Karunanayake said.

There was some confusion that unit trusts, which were tax free, will be taxed twice, at the level of the fund and also at the hands of beneficiaries following proposals made in last year's budget.

Finance Minister Ravi Karunanayake said while the state wanted to give a benefit for individuals who were taking a greater risk and investing in stocks, it did not want to give a tax loophole for companies to use mutual funds as a device for escaping tax.

Companies will have to pay tax at their rate of corporate tax.

Sri Lanka is planning to introduce a new income tax law soon. (Colombo/May14/2017)
Ethical Trader
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Sri Lanka to tax unit trusts at 10-pct for individuals Empty Re: Sri Lanka to tax unit trusts at 10-pct for individuals

on Mon May 15, 2017 1:03 pm
Thanks.
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pjrngroup
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Sri Lanka to tax unit trusts at 10-pct for individuals Empty Re: Sri Lanka to tax unit trusts at 10-pct for individuals

on Mon May 15, 2017 8:14 pm
Thanks Back.
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Sri Lanka to tax unit trusts at 10-pct for individuals Empty Re: Sri Lanka to tax unit trusts at 10-pct for individuals

on Fri May 19, 2017 4:59 pm
Your Welcome.

If companies are taxed high(40% ?) on units, they will switch to equities or other instruments. The Unit funds will be compelled to wind up. There will be a lot of argeybargey in the market before it settles down. Or am I reading this wrong ?
Ethical Trader
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Sri Lanka to tax unit trusts at 10-pct for individuals Empty Re: Sri Lanka to tax unit trusts at 10-pct for individuals

on Fri May 19, 2017 5:52 pm
Well, after listening to the FM recently on this What I gathered is that corporate are taxed more than Unit Trusts. But this 10% tax for Unit Trusts is a new one I suppose. He should not have imposed it.
Backstage wrote:Your Welcome.

If companies are taxed high(40% ?) on units, they will switch to equities or other instruments. The Unit funds will be compelled to wind up. There will be a lot of argeybargey in the market before it settles down. Or am I reading this wrong ?
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