KPMG Sri Lanka Academy webinar on new tax rules pertaining to dividends

KPMG Principal – Tax & Regulatory Suresh R.I. Perera

KPMG Director – Tax & Regulatory Hasna Hassan

KPMG Senior Manager – Tax & Regulatory Radhini Thomas

The KPMG Friday Mid Afternoon Chat on 20 August at 3 p.m. will be addressed by KPMG Principal – Tax & Regulatory Suresh R.I. Perera, KPMG Director – Tax & Regulatory Hasna Hassan and KPMG

Senior Manager – Tax & Regulatory Radhini Thomas.

The tax liability on dividends plays pivotal role in any corporate regime. The rate and method of taxing corporate profits should have underlying economic and legal rationale. There are various dividend tax frame works adopted by countries. Imputation system, reduced rates of tax, exemption system, deduction system and full integration systems are frameworks an analyst undertaking a study on other countries may observe. 

Corporate income taxation in modern days seek to achieve neutrality between the tax liability on an individual deriving profits directly compared to a person generating income via an activity using the corporate veil.  

The ‘classical system’ of dividend taxation has been significantly altered by the new rules introduced by the recent amendment by the Inland Revenue (Amendment) Act No. 10 of 2021. The taxation of dividends as per a unique formula has given rise to many unresolved issues in the corporate income tax arena.

The webinar dissects various scenarios and the complexities faced by both the dividend declaring company and the shareholders. In addition, tax issues on script dividends, dividends in species and dividends paid to and received from non-residents would also be discussed for the benefit of the participants. For registrations please contact Seneli on [email protected] or 074 061 0783.