A Q&A guide to tax on corporate transactions in Sri Lanka.
This Q&A provides a high level overview of tax in Sri Lanka and looks at key practical issues including, for example, the main taxes, reliefs and structures used in share and asset sales, dividends, mergers, joint ventures, reorganizations, share buybacks, private equity deals and restructuring and insolvency.
1. What are the main authorities responsible for enforcing taxes on corporate transactions in your jurisdiction?
The Department of Inland Revenue (DIR) is the main authority responsible for enforcing taxes on corporate transactions in Sri Lanka.
2. Is it possible or necessary to apply for tax clearances or obtain guidance from the tax authorities before completing a corporate transaction?