Unit trusts taxed at 10-pct for individuals

asked May 14, 2017 in Tax News & Rumours by Vishan (3,610 points)
Sri Lanka will tax profits of unit trusts (mutual funds under a specific law) at 10 percent for individuals and a higher rate for corporates at the hands of beneficiaries, Finance Minister Ravi Karunanayake said.

There was some confusion that unit trusts, which were tax free, will be taxed twice, at the level of the fund and also at the hands of beneficiaries following proposals made in last year's budget.

Finance Minister Ravi Karunanayake said while the state wanted to give a benefit for individuals who were taking a greater risk and investing in stocks, it did not want to give a tax loophole for companies to use mutual funds as a device for escaping tax.

Companies will have to pay tax at their rate of corporate tax.


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