TAX CHANGES TO ICT SECTOR
The following tax benefits have been implemented for the ICT sector based on the 2021 budget that was passed in December 2020. These benefits indicate a state-wide push for the ICT sector which all firms in the industry can avail themselves which will in turn help drive the ecosystem forward.
TELECOM LEVY REDUCED
A 25% reduction in the telecommunications levy.
TAX FREE ICT SERVICES
An exemption of all taxes for ICT related services.
VAT THRESHOLD INCREASED
Increasing the VAT threshold from Rs.12 million to Rs.300 million.
DOUBLED PAYEE TAX
A doubling of the PAYEE tax threshold going up to Rs.250,000
FOREIGN EARNING RELIEF
A relief on all remittances from foreign earnings.