The Government yesterday presented the proposed Surcharge Tax Bill to Parliament.

The Bill, which imposes a retrospective one-time surcharge tax of 25% on persons and companies with a taxable income over Rs. 2 billion for the year 2020/2021, was presented by Leader of the House Minister Dinesh Gunawardena.

The Bill has been drafted in keeping with the proposal in the 2022 Budget to impose a one-off 25% surcharge tax on individuals or companies earning taxable income more than Rs. 2 billion for the assessment year 2020/2021.

Under the provisions of the Bill, each company of a group of companies, of which the aggregate of the taxable income of all subsidiaries and the holding company in that group exceeds Rs. 2 billion for the year of assessment commenced on 1 April 2020, will be charged the Surcharge Tax.

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