Govt. announces new investor incentive scheme

2017-05-15 10:07:59

Minister Ravi Karunanayake. 
Pic by Nisal Badage


By Yohan Perera
The government yesterday announced a new investor incentive scheme with an enhanced depreciation allowance, an amount that can be taken off a business’ profit figure when calculating tax, to spur the sluggish investment climate prevailing in the country. 
Finance Minister Ravi Karunanayake, who announced the scheme said, the objective of it is to help realize the target of increasing investments up to US$ 5.6 billion at the end of the year and to enable employment generation. “The scheme is based on the size of investments,” the minister said.
Accordingly, investments not more than US $ 3 million made in the Northern Province will be entitled to a depreciation allowance of 200 percent while investments made in other provinces will be subjected to a depreciation allowance of 100 percent. 
However, the investments will have to be carried out within 3 years in order to qualify for the scheme.
Investments between US $ 3 to 5 million that provide employment to not less than 250 persons in the Northern Province will be entitled to a 200 percent depreciation allowance while in other provinces similar investments with same number of jobs will be subjected to a 100 percent depreciation allowance.
For investments between US $ 50 to 100 million, there will be a deprecation allowance of 100 percent irrespective of their geographical location while unrelieved losses can be claimed within 10 years.
Investments between US $ 100 million to US $ 2 billion will be subjected to a depreciation allowance of 150 percent, while the unrelieved losses can be claimed in 10 years. 
Also, investments over US $ 2 billion will be subjected to a depreciation allowance of 150 percent while unrelieved losses could be claimed in 25 years.
Depreciation allowance of 100 percent has been given to investments of more than US$ 2 billion on ports developments while unrelieved losses can be claimed in 25 years. 
They will be exempted from corporate taxes up to the period which the investment allowance is fully absorbed, and corporate tax would be charged at 7 percent for the next 15 years.
Those investments which are more than US$ 2 billion will be subjected to a withholding tax exemption during the accelerated depreciation allowance applicable period. They would also be exempted from dividend payments to non-resident companies and PAYE tax for maximum of 20 expatriate employees.

  Comments - 0

Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.
Name is required

Email is required
Comment cannot be empty

Hilton Colombo participates in the Emirates Salon Culinaire 2018

Friday, 23 February 2018 13:48

Six chefs from the Hilton Colombo flew to Dubai to participate in what is called one of the most pre

Orchid Apartment - 2 nears completion, exhibits high demand

Friday, 23 February 2018 11:32

The Orchid Apartment-2, the third and final phase of the stunning 22-acre prime Orchid projectin Mal

IgniterSpace celebrates two years of social impact with three major accolades

Friday, 23 February 2018 11:13

When software engineer Hasith Yaggahavita founded IgniterSpace, together with two colleagues, he was

More News