The budget announced the following tax concession for Small and Medium Enterprises -
- Exemption from Value Added Tax and Nation Building Tax for persons or partnerships whose total annual turnover from all businesses is less than LKR 12 million (appx. USD 91,736)
- For a person having a turnover of less than LKR 300 million (appx. USD 2.23 million)* per year from all businesses for any period prior to April 2011 and having a case of non-compliance with Income or indirect taxes can get a reflief from these outstanding payments if the past earnings are invested prior to 31 March 2014. Profts and income earned from these reinvestments will be income tax exempt for 5 years.
- A person returning from employment abroad and using his/her earnings to invest in a business will be exempt from all taxes for a period of 5 years.
Sri Lankan Rupee to USD conversion as on 9 November 2012 - LKR 130.81 / 1 USD