The Cabinet of Ministers has authorized the proposal to start needed amendments to the Inland Revenue Act No.
24 of 2017 in order to make it necessary to provide the Tax Identification Number (TIN) when opening all types of bank accounts.Legal arrangements to increase the withholding tax rate from 5% to 10% were introduced by the Inland Revenue (Amendment) Act No.
2 of 2025 with effect from April 1, 2025 due to charging advance earnings tax even from individuals with an income not exceeding Rs.
1.8 million which is the annual income limit to recover tax from.
The measure was taken because depositors and low income making people are apparently facing inconvenience.As a service to the concern, it has actually been proposed to introduce a methodology to provide a self-declaration by the people with a lower earnings than the tax complimentary margin.Accordingly, the Cabinet of Ministers has granted approval to the proposal submitted by the President in his capability as the Minister of Finance, Policy Planning and Economic Development to make necessary amendments to the Inland Revenue Act No.
24 of 2017 to introduce a self-declaration for all domestic depositors with an estimated earnings not going beyond Rs.
1.8 million per year to release them from recuperating keeping tax on interest and making compulsory of providing the Tax Identification Number (TIN) for opening all sorts of bank accounts.