Oct 08, 2012 (LBO) – A 450 million US dollar hotel and residential development in Sri Lanka’s capital Colombo by India’s Krrish group is getting sweeping tax benefits running up to 25 years. Krrish group is building a tower block in Colombo’s colonial quarter by the side of an historic British administration building ‘Transworks House’ which will be turned into a luxury hotel.
The project will get a 10 year income tax holiday and a concessionary 6 percent tax will be charged for the next 15 years.
Dividends in the hands of shareholders will be tax free for 11 years, a gazette notification published under Sri Lanka’s strategic investment law said.
Twenty expatriate staff will be exempted from payroll taxes (Pay As You Earn) for give years, and the firm will be exempted from withholding tax on interest on foreign loans taken for capital expenditure and technical fees paid to consultants during the project period.
Good imported for the project will be exempted from value added tax, port and airport development levy, customs duty and levies for a construction industry guarantee fund.