Sri Lanka’s Dialog Axiata PLC, a subsidiary of Malaysia’s Axiata Group Berhad expects to incur Rs.3-4 billion payment for the proposed one-off “Surcharge Tax” to be levied on large companies.
The Government Budget Proposals for 2022 proposed a one-off “Surcharge Tax” at the rate of 25 percent on Individuals or Companies who have earned a taxable income over Rs. 2 billion for the year of assessment 2020/2021. The Bill governing the imposition and administration of the Surcharge Tax was published in the gazette dated 7th of February 2022, which will be tabled for debate in Parliament in due course.
“Based on the provisions of the Bill, Surcharge Tax payable by Dialog Axiata PLC is in the range between LKR 3Bn to LKR
4Bn. However, there may be changes to the aforementioned Bill in its process of enactment, which may impact the
aforementioned estimate,” the company said.
However, since the legislation was not enacted or substantially enacted at the balance sheet date, no provision for Surcharge Tax was made in the Company’s recently disclosed Financial Statements.