Budget 2021 proposes to simplify taxes on capital gains

Nov 17, 2020 (LBO) – Finance Minister has proposed to simplify the taxes on capital gains. Accordingly, such taxes will be calculated based on the sale price of a property or the assessed value of a property whichever is higher.

In order to promote investments in the housing market through the Sri Lanka Real Estate Investment Trust (SLREIT) regulated by the Securities and Exchange Commission, the Finance Minister has also proposed to exempt such investments from capital gains tax and dividends free from income tax, and to reduce the stamp duty up to 0.75 percent.

Non-residents could purchase super-luxury condominiums utilising, foreign currency earnings made in Sri Lanka, earnings in foreign countries or a loan obtained from a Bank outside Sri Lanka.